AltaGas Announces the Filing of an Amended and Restated Prospectus for the Initial Public Offering of AltaGas Canada Inc., which Includes AltaGas’ Canadian Utilities and Certain Renewable Power Assets in Canada

Press Release

AltaGas continues to execute on its strategy to reshape the company with a focus on Gas and U.S. Utilities

Oct. 2, 2018

• Upon successful completion of the initial public offering (“IPO”), AltaGas will exceed its target on its asset monetization plan with respect to the repayment of its bridge facility, with approximately $2.5 billion expected to be raised.  This surpasses its $2.0 billion goal.
• AltaGas has been rapidly repaying its bridge facility, and expects to meet its commitment to have the bridge facility retired in the fourth quarter of 2018.
• The final step for the bridge repayment following the completion of the IPO is approximately US $1.1 billion in financing, which is expected to include term debt and hybrid securities offerings.
• Total cash proceeds for AltaGas from the IPO is expected to approach $1 billion, which will be funded by AltaGas Canada Inc. (“ACI”) through the sale of common shares and $635 million in debt.¹
• AltaGas expects to hold approximately 37% to 45% of ACI at the close of the IPO.
• ACI has a unique, diversified portfolio of high quality, strategically located Canadian utility and renewable power assets that are 100% regulated and long-term contracted businesses that support predictable earnings.
• ACI is led by a highly qualified, independent management team, who are expected to build on AltaGas’ proud history of growth and development.

AltaGas Ltd. (AltaGas or the Company) (TSX: ALA) announced today that ACI has filed and obtained a receipt for an amended and restated preliminary prospectus with respect to ACI’s IPO with the securities regulatory authorities in Canada, which amends and restates the preliminary prospectus of ACI filed on September 12, 2018.  ACI proposes to sell 16,500,000 common shares.  The offering price is expected to be between $15.50 and $18.00per common share for aggregate gross proceeds of approximately $255 million to $341 million (if the over-allotment option is exercised in full). Final decision of the IPO size and price, as well as the closing of the IPO, is expected to occur in late October 2018.

“With the successful completion of this IPO we expect to raise approximately $2.5 billion through our asset monetization plan, exceeding our original target of $2.0 billion.  The IPO also represents an important step in our strategy to reshape the Company,” stated David Cornhill, Chairman and interim co-Chief Executive Officer of AltaGas.  “The IPO is a very efficient and effective path for us to monetize the value of these attractive assets and allows us to benefit from ACI’s future growth.

“Looking beyond the IPO, the repayment of the bridge facility remains our near term priority.  We are committed to strengthening our balance sheet and maintaining an investment grade credit rating, which will position us for long-term value creation and growth. The growth opportunities for AltaGas – particularly in our Gas and U.S. Utilities businesses – are expected to provide superior risk adjusted returns for us,” concluded Mr. Cornhill.

The IPO is being jointly led by RBC Capital Markets, TD Securities Inc. and  J.P. Morgan Securities Canada Inc. Completion of the IPO is subject to, and conditional upon, the execution of an underwriting agreement and the receipt of all necessary approvals, including regulatory approvals. The IPO is expected to close in late October 2018.

There can be no assurance that the IPO will be completed. An investment in the common shares of ACI is subject to a number of risks. The number of common shares offered and the offering price of the common shares have not been determined and will be dependent upon market conditions and the execution of an underwriting agreement. The amended and restated preliminary prospectus contains important information relating to the IPO and remains subject to completion or amendment and the execution of an underwriting agreement. For more information, potential investors should read the amended and restated preliminary prospectus which is available on SEDAR at www.sedar.com. The amended and restated preliminary prospectus has not yet become final for the purpose of a distribution to the public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or acceptance of an offer to buy the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such jurisdiction.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities offered pursuant to the amended and restated preliminary prospectus 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 laws. Accordingly, these securities may not be offered or sold within the United States or to a U.S. person unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.

About AltaGas
AltaGas is an energy infrastructure company with a focus on natural gas, power and regulated utilities. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca.

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