NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRE SERVICES
BASE SHELF PROSPECTUS IS ACCESSIBLE, AND THE PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE WITHIN TWO BUSINESS DAYS, ON SEDAR+
CALGARY, Alberta, Nov. 03, 2025 (GLOBE NEWSWIRE) --
AltaGas Ltd. ("AltaGas" or the "Company") (TSX:ALA) 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.
Bought Deal Financing
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").
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.
AltaGas intends to use the net proceeds from the offering for leverage reduction and to fund future growth, with the financing expected to deliver the same net near-term de-leveraging as would have been achieved through a full monetization of MVP and stronger long-term leverage reduction through MVP ownership once the Boost and Southgate projects (described below) come online.
The Common Shares will be offered pursuant to a prospectus supplement under the short form base shelf prospectus filed by the Corporation on March 12, 2025, in each of the provinces of Canada (collectively, the "prospectus"). The prospectus will contain important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision. The prospectus is available on SEDAR+ at http://www.sedarplus.ca.
An electronic or paper copy of the shelf prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from CIBC Capital Markets, 161 Bay Street, 5th Floor, Toronto, ON M5J 2S8 or by telephone at 416-956-6378 or by email at by providing an email address or address, as applicable or from TD Securities Inc. at 1625 Tech Avenue, Mississauga, Ontario, L4W 5P5, Attention: Symcor, NPM or by telephone at (289) 360-2009 or by email at or from RBC Dominion Securities Inc., Attention: Distribution Centre, 180 Wellington Street West, 8th Floor, Toronto, ON M5J 0C2 or by email at or from Scotiabank at 40 Temperance Street, 6th Floor, Toronto, Ontario M5H 0B4, Attention: Equity Capital Markets or by phone at (416)-863-7704 or by email at by providing the contact with an email address or address, as applicable. The base shelf prospectus and prospectus supplement will contain important detailed information about the Company and the Offering. Prospective investors should read the shelf prospectus and prospectus supplement (when filed) and the other documents the Company has filed on SEDAR+ before making an investment decision.
The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
MVP Update
Following a comprehensive sales process, AltaGas has elected to retain its ownership in MVP, including the MVP Mainline, MVP Boost, and MVP Southgate projects. The Company was pleased by robust demand from a broad set of buyers throughout the sale process. However, recent developments released ...
