TransCanada continues U.S. asset drop in US$215M deal

CALGARY—TransCanada Corp. is selling its remaining 30 per cent interest in Bison Pipeline LLC (Bison) to its master limited partnership, TC PipeLines, LP for US$215 million.

The sale is expected to close on October 1, 2014.

“The Bison transaction advances our previously stated commitment to sell the remainder of TransCanada’s U.S. natural gas pipeline assets to the Partnership,” said Russ Girling, TransCanada’s president and chief executive officer. “As TransCanada continues to progress our unprecedented $38 billion capital program, we intend to drop down the remainder of those assets on a more sizeable, frequent basis over the coming quarters and years. This will provide TransCanada with significant cash proceeds to help fund our capital program and enhance the size and diversity of the Partnership’s asset base, positioning it with visible, high quality future growth.”

Bison is a 487-kilometre natural gas pipeline connecting Rocky Mountain gas supply to downstream markets through the Northern Border pipeline system. The pipeline was built in 2010.

TransCanada’s remaining U.S. natural gas pipeline assets include:

30 per cent interest in GTN;
44.5 per cent and 61.7 per cent interest in Iroquois and Portland
100 per cent and 53.6 per cent interest in ANR and Great Lakes

Including the Bison transaction announced today, these assets are expected to generate US$500 million of EBITDA in 2016 and beyond.

“The anticipated drop down of ANR over the coming years will deliver significant value to both TransCanada shareholders and the Partnership’s unit holders,” added Girling.

TransCanada, through its subsidiaries, currently holds a 28 per cent interest in TC PipeLines, LP, a United States master limited partnership, which was formed to acquire, own and actively participate in the management of U.S. natural gas pipelines and related assets.