CALGARY, AB, Jan. 11, 2022 /CNW/ - AltaGas Ltd. ("AltaGas"
or the "Company") (TSX: ALA) today announced that it has closed
its previously announced offering of $300 million of 5.25%
Fixed-to-Fixed Rate Subordinated Notes, Series 1 due January 11, 2082 (the "Offering").
The Company intends to use the net proceeds of the offering to
redeem or repurchase its outstanding cumulative redeemable
five-year rate reset preferred shares, series K (TSX: ALA.PR.K). As
a result of the Offering, based on current rates, AltaGas expects
to save approximately $66 million in
the initial ten-year term of the Offering due to lower taxes and
financing charges. The Offering also continues to stagger,
extend and de-risk AltaGas' capital structure.
The subordinated notes are being offered through a syndicate of
underwriters, co-led by CIBC Capital Markets, BMO Capital Markets
and RBC Capital Markets, under AltaGas' short form base shelf
prospectus dated February 22, 2021,
as supplemented by a prospectus supplement dated January 5, 2022.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the subordinated notes in any
jurisdiction. The subordinated notes have not been approved or
disapproved by any regulatory authority. The subordinated notes
have not been and will not be registered under the United States
Securities Act of 1933, as amended, or any state securities law,
and may not be offered or sold within the
United States, or to or for the account of, United States persons.
AltaGas is a leading North American infrastructure company that
connects customers and markets to affordable and reliable sources
of energy. The Company operates a diversified, lower-risk,
high-growth Utilities and Midstream business that is focused on
delivering resilient and durable value for its stakeholders.
For more information visit www.altagas.ca or
reach out to one of the following:
Vice President, Investor Relations & Corporate Development
This news release contains forward-looking statements. Words
such as "will", "continued", "ongoing", "believe", "opportunities"
" and similar expressions suggesting future events or future
performance, as they relate to the Corporation or any affiliate of
the Corporation, are intended to identify forward-looking
statements. In particular, this news release contains
forward-looking statements relating to the expected use of the net
proceeds of the Offering and the expected cost savings the
Corporation expects to realize.
These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect AltaGas'
current views with respect to future events based on certain
material factors and assumptions are subject to certain risks and
uncertainties, including without limitation, changes in market,
competition, governmental or regulatory developments, general
economic conditions and other factors set out in AltaGas' public
Many factors could cause AltaGas' actual results, performance
or achievements to vary from those described in this news release,
including, without limitation, those listed above. These factors
should not be construed as exhaustive. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual
results may vary materially from those described in this news
release, and such forward-looking statements, should not be unduly
relied upon. Such statements speak only as of the date of this news
release. AltaGas does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required by law. The forward-looking statements contained in this
news release are expressly qualified by this cautionary
SOURCE AltaGas Ltd.