By Mary-Katherine Stinson
Lexington, Ky., Nov. 10 – AltaGas Ltd. closed its previously announced offering of C$200 million of 8.9% fixed-to-fixed rate subordinated notes, series 3, due Nov. 10, 2083 (BB/BB+), according to a press release.
The subordinated notes are being offered through a syndicate of underwriters, co-led by CIBC Capital Markets and RBC Capital Markets, under AltaGas' short form base shelf prospectus dated March 31, 2023, as supplemented by a prospectus supplement dated Nov. 7.
Proceeds will be used to redeem or repurchase its outstanding cumulative redeemable five-year rate reset preferred shares, series E, which are not tax deductible and are subject to part 6.1 tax at 40%. AltaGas expects to save approximately C$10 million or C$0.01 of annual earnings per share during the initial five-year term of the subordinated notes due to lower taxes and financing charges compared to the reset rate for the series E preferred shares.
The energy infrastructure company is based in Calgary, Alta.
| Issuer: | AltaGas Ltd.
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| Amount: | C$200 million
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| Issue: | Subordinated notes, series 3
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| Maturity: | Nov. 10, 2083
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| Bookrunners: | CIBC Capital Markets and RBC Capital Markets
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| Coupon: | 8.9%
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| Announcement date: | Nov. 10
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| Ratings: | S&P: BB
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| Fitch: BB+
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