TC Energy deleverages via equity sale of Columbia Gas, Columbia Gulf

Chicago, July 24 – TC Energy Corp. announced the $5.2 billion sale of a 40% equity interest in Columbia Gas and Columbia Gulf to Global Infrastructure Partners, which will have some impact on the debt of new company entities established for the transaction, according to a press release.

First, Columbia Pipeline Group, Inc. will enter into a supplemental indenture relating to the 4.5% senior notes due 2025 and the 5.8% senior notes due in 2024, with a total principal amount outstanding of $1.5 billion.

As the equity interests in Columbia Gas and Columbia Gulf constitute substantially all of the assets of the group, the obligations under the notes will be transferred to new entity Columbia Pipelines Operating Co., LLC.

Further, TC Energy expects to undertake a recapitalization and debt restructuring of both newly formed wholly owned entities Columbia Pipelines Holding Co., LLC and Columbia Pipelines Operating Co., LLC.

TD Securities Inc. and Citi acted as financial advisers to TC Energy on the transaction and have provided capital commitments with respect to expected bank financing. Mayer Brown is acting as legal adviser to TC Energy.

The Calgary, Alta.-based natural gas company develops and operates energy infrastructure in Canada, the United States and Mexico.

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