Business
AltaGas to Retain MVP as Long-Term Investment; Announces $400 Million Bought Deal Financing
MVP Pipeline Set to Deliver Strong Growth Over Next Three Years NOT FOR DISSEMINATION I...
About this update from Altagas Ltd.
[{"type":"text","content":"AltaGas to Retain MVP as Long-Term Investment; Announces $400 Million Bought Deal Financing\n\n\n\n\n MVP Pipeline Set to Deliver Strong Growth Over Next Three Years\n \n\n\n\n\n NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRE SERVICES\n \n\n\n\n BASE SHELF PROSPECTUS IS ACCESSIBLE, AND THE PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE WITHIN TWO BUSINESS DAYS, ON SEDAR+\n \n\n\n CALGARY, Alberta, Nov. 03, 2025 (GLOBE NEWSWIRE) --\n \n\n\n AltaGas Ltd. (\"AltaGas\"\n \n or the\n \n \"Company\") (TSX: ALA)\n \n today announced its decision to retain ownership in the Mountain Valley Pipeline (“MVP”) as a long-term investment. Concurrently, AltaGas has entered into an agreement with a syndicate of underwriters, led by CIBC Capital Markets, TD Securities Inc., RBC Capital Markets and Scotiabank for a bought deal equity financing to issue $400 million of common equity. While not material on a consolidated level, these actions are expected to maximize value for AltaGas’ shareholders—driving modestly higher near- and medium-term normalized EPS accretion relative to a monetization of MVP. The equity issuance will be leverage neutral in the near-term, when compared to a monetization of MVP; and longer-term, post the two expansion projects coming online, will enhance AltaGas’ credit metrics and increase investment capacity to fund growth projects.\n \n\n\n Bought Deal Financing\n \n\n\n AltaGas has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets, TD Securities Inc., RBC Capital Markets and Scotiabank (collectively, the \"Underwriters\") under which the Underwriters have agreed to purchase, on a bought deal basis, 10,100,000 common shares of the Company (\"Common Shares\") for aggregate gross proceeds of $400 million at an offering price of $39.65 per Common Share (the \"Offering\").\n \n\n AltaGas has granted the Underwriters an over-allotment option to purchase, on the same terms and exercisable not more than 30 days after the closing of the offering, up to an additional 1,515,000 common shares for additional gross proceeds of up to approximately $60 million. Closing of the offering is expected to occur on or about November 7, 2025.\n \n\n AltaGas intends to use the net proceeds from the offering for leverage reduction and to fund future growth, with the fina...