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Tidewater Midstream and Infrastructure Ltd. announces an accelerated deleveraging plan through the accretive disposition of the Pioneer Pipeline as well as additional commercial arrangements at the Brazeau River Complex
Tidewater Midstream and Infrastructure Ltd. announces an accelerated deleveraging plan thr...
About this update from Tidewater Midstream & Infrastructure Ltd.
[{"type":"text","content":"\n\n\n\nTidewater Midstream and Infrastructure Ltd. announces an accelerated deleveraging plan through the accretive disposition of the Pioneer Pipeline as well as additional commercial arrangements at the Brazeau River Complex\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 12, 2020\n\n\n\nCALGARY, March 12, 2020 /CNW/ - Tidewater Midstream and Infrastructure Ltd. (\"Tidewater\" or the \"Corporation\") (TSX: TWM) is pleased to announce that, with its partner TransAlta Corporation (\"TransAlta\"), has entered into a Letter of Intent to sell the Pioneer Pipeline to NOVA Gas Transmission Ltd. (\"NGTL\"), a wholly-owned subsidiary of TC Energy, for total cash consideration of $255.0 million (the \"Pioneer Transaction\"). Proceeds of the transaction will be split equally between Tidewater and TransAlta pursuant to their existing Pioneer Pipeline partnership.\n\n \n \n \n \n \n \n\n \nIn addition, Tidewater and TransAlta have entered into a separate Letter of Intent whereby TransAlta will pay Tidewater an additional $10.5 million for certain ancillary assets  not included in the Pioneer Transaction, and for completion of some budgeted restoration work along the Pioneer Pipeline route that was delayed until 2020 due to weather (together with the Pioneer Transaction, collectively known as the \"Proposed Transactions\"). \nIndependently, NGTL and Tidewater have also agreed to terms and conditions to qualify Tidewater for NGTL services that would result in Tidewater's proforma Adjusted EBITDA remaining unchanged following the close of the Proposed Transactions.\nThe Proposed Transactions result in net proceeds to Tidewater of $138.0 million.  As such, the Proposed Transactions and NGTL services are expected to be 15% accretive to year-end 2020 Net Debt to Adjusted EBITDA and 30% accretive to Net Income per share on a proforma basis to Tidewater's 2020 guidance. \nPioneer Pipeline Disposition Details\nTidewater and TransAlta have entered a Letter of Intent with NGTL (collectively known as the \"Parties\") to sell the Pioneer Pipeline for...