Alliance Pipeline, Alliance Canada to redeem several notes on Dec. 10

By Wendy Van Sickle

Columbus, Ohio, Nov. 10 – Alliance Pipeline LP and Alliance Canada announced their intention to redeem all of several series of notes, according to a news release on Wednesday.

The notes to be redeemed by Alliance Canada include all of its outstanding 7.181% series A senior secured notes due June 30, 2023, 5.546% series A senior secured notes due Dec. 31, 2023, 7.217% series A senior secured notes due Dec. 31, 2025 and 6.765% series A senior secured notes due Dec. 31, 2025.

Alliance Pipeline will redeem all of its outstanding 7.877% senior notes due Dec. 31, 2025 and 4.591% senior notes due Dec. 31, 2025.

The redemptions will occur on Dec. 10.

As of Wednesday, C$119,223,900 of the 7.181% notes; C$16,002,000 of the 5.546% notes; C$108,289,300 of the 7.217% notes; C$123.74 million of the 6.765% notes; US$138 million of the 7.877% notes; and US$37,021,200 of the 4.591% notes were outstanding.

Each series of Alliance Canada notes will be redeemed for a redemption price equal to the greater of par and that price which provides a yield to maturity equal to the yield to maturity of the applicable Government of Canada bond with a term to maturity equal to the remaining term of the applicable series plus the applicable spread, plus accrued interest in either case.

Each series of Alliance Pipeline notes will be redeemed for a price equal to the greater of par and that price which provides a yield to maturity equal to the yield to maturity of the applicable U.S. treasury instrument with a term to maturity equal to the remaining term of the applicable series plus the applicable spread, plus accrued interest in either case.

The Alliance Pipeline system consists of an approximately 3,849-kilometer integrated Canadian and U.S. natural gas transmission pipeline system, delivering natural gas from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub. Alliance Canada owns the Canadian portion. Both issuers are owned 50% each by affiliates of Enbridge Inc. and Pembina Pipeline Corp.

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