Coastal GasLink LP, a pipeline project in Western Canada, is talking to investors about a possible jumbo high-grade bond sale, according to people familiar with the matter.
The transaction for the Calgary-based company, which is operated by TC Energy Corp., may be as large as C$4 billion (US$2.9 billion), said the people, speaking on condition they not be identified because the matter is still private. The lower end of the range being discussed is C$3 billion, they said.
The deal may take place in early June and will be part of the Canadian pipeline company’s C$9 billion fixed-income financing plan, the people said.
TC Energy did not comment.
KKR & Co. and Alberta Investment Management Corp. own a 65% stake in Coastal GasLink. TC Energy owns the other 35%. The natural gas pipeline supplies the Shell-led LNG Canada export terminal in British Columbia.
The pipeline will bring natural gas across the Canadian Rockies to a facility in Kitimat, British Columbia, where it will be turned into liquefied natural gas and shipped mostly to Asia once the terminal is operational.
— With assistance from Robert Tuttle and Geoffrey Morgan
Share This:
