AltaGas Ltd. announces the completion of the initial public offering of AltaGas Canada Inc., which includes AltaGas’ Canadian utilities and certain renewable power assets in Canada

Press Release

CALGARY, Oct. 25, 2018  –

• AltaGas Canada Inc. (“ACI”) has successfully completed the initial public offering (“IPO”) and sale of 16,500,000 common shares at $14.50 per common share (the “Offering Price”) for gross proceeds of approximately $239 million.
• Total cash proceeds for AltaGas from the IPO are approximately $874 million¹, which will be funded by ACI through the sale of 16,500,000 common shares and $635 million in debt.²
• Total cash proceeds for AltaGas could increase to approximately $910 million¹ if the 2,475,000 common share over-allotment option is exercised in full.
• Following the IPO, AltaGas holds approximately 45 percent of ACI common shares, which could be reduced to approximately 36.7 percent if the over-allotment option is exercised in full.
• AltaGas has exceeded its $2.0 billion target on its asset monetization plan with respect to the repayment of its bridge facility, with approximately $2.4 billion raised.
• AltaGas has been rapidly repaying its bridge facility, and expects to repay its final commitment of approximately US $1.2 billion in the fourth quarter of 2018.

AltaGas Ltd. (AltaGas) (TSX: ALA) announced today that ACI has successfully completed the IPO and sale of 16,500,000 common shares of ACI at the Offering Price for aggregate gross proceeds of approximately $239 million. Total cash proceeds for AltaGas including the sale of ACI common shares to the public and $635 million in new debt issued at ACI is approximately $874 million¹.  Total cash proceeds for AltaGas could increase to $910 million¹ if the 2,475,000 common share over-allotment option is exercised in full.

“The successful completion of this IPO marks the conclusion of our $2.0 billion asset monetization plan that we outlined earlier this year,” said David Cornhill, Chairman and interim co-Chief Executive Officer of AltaGas. “We have moved swiftly since closing the WGL acquisition on July 6, 2018 to complete our asset monetization plan and pay down the bridge facility. We exceeded our initial asset monetization target and raised approximately $2.4 billion through this IPO and the previously announced sales of our non-core midstream and power assets in September and 35 percent interest in the Northwest Hydro Facilities in June.”

The IPO was made through a syndicate of underwriters (the “Underwriters”) jointly led by RBC Capital Markets, TD Securities Inc. and J.P. Morgan Securities Canada Inc.

The Toronto Stock Exchange (“TSX”) approved the listing of the common shares of ACI under the symbol “ACI”, and common shares of ACI are trading on the TSX.

The Underwriters have been granted an over-allotment option exercisable at the Underwriters’ sole discretion, to purchase up to an additional 2,475,000 common shares (for a total 18,975,000 common shares if the over-allotment option is exercised in full) of ACI at the Offering Price, exercisable in whole or in part up to 30 days after closing of the IPO.

Following the IPO, AltaGas Ltd. holds a 45 percent interest in ACI.  AltaGas Ltd. ownership would be reduced to approximately 36.7 percent if the Underwriters’ over-allotment option is exercised in full.

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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