PIPELINES / TransCanada PipeLines Gas Processing L.P. To Go Public
TRANSCANADA PRICES PUBLIC OFFERING FOR GAS PROCESSING INTERESTS
CALGARY, July 14 /CNW/ - TransCanada PipeLines Limited today announced
that 3.3 million partnership units of TransCanada Gas Processing, L. P. (the
partnership) will be sold to the public at $25 each, and will result in a
total offering of $82.5 million, for an initial yield of approximately 9.1 per
cent. The closing is expected to occur on or about July 16, 1998.
At present, TransCanada holds various ownership interests in five natural
gas gathering and processing facilities and all related agreements (the
facilities) in Alberta and Saskatchewan. Using proceeds from the offering,
the partnership will acquire an approximate indirect 61 per cent interest in
the facilities, while TransCanada will retain the remaining approximate 39 per
cent. After 20 years, TransCanada will reacquire the facilities at their fair
market value for cash or shares of TransCanada.
''It's a good deal for both TransCanada and investors,'' said George
Watson, TransCanada president and chief executive officer. ''TransCanada will
recapitalize these Canadian gas processing investments in a very efficient
manner and investors will receive attractive returns and tax treatment,'' he
said.
The facilities include all of TransCanada's interests in the Cutbank,
Enchant, Freefight and Crane Lake/Maple Creek, Talbot Lake and
Columbia-Minehead gas processing and gathering systems. These facilities have
a 1998 forecast total average daily throughput of 166 million cubic feet per
day of natural gas.
TransCanada is a leading North American energy services company with
businesses in transmission, marketing and processing. The company, through
its Cdn$21 billion asset base, provides high value-added energy service
solutions to the North American and international marketplace. Common shares
trade under the symbol TRP, primarily on the Toronto, Montr‚al and New York
stock exchanges.
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