AltaGas Ltd.

TSX : ALA


AltaGas Ltd.

August 19, 2014 16:11 ET

AltaGas Ltd. Announces $400 Million Common Share Offering

CALGARY, ALBERTA--(Marketwired - Aug. 19, 2014) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that it has entered into an agreement with a syndicate of underwriters co-led by TD Securities Inc., BMO Capital Markets and RBC Capital Markets to issue 7.850 million common shares (the "Common Shares") on a bought deal basis at an issue price of $51.00 per Common Share (the "Offering Price") for total gross proceeds of approximately $400 million (the "Offering"). The net proceeds resulting from the Offering will be used to partially fund AltaGas' capital growth program, reduce bank indebtedness and for general corporate purposes.

AltaGas continues to make significant progress on its growth opportunities. Earlier today, AltaGas announced a 15-year strategic alliance with Painted Pony Petroleum Ltd. ("Painted Pony") and the construction of Townsend, a new 198 Mmcf/d shallow-cut gas processing facility in the Montney resource play. The strategic alliance is expected to further expand AltaGas' fully integrated midstream business, while providing essential gas processing infrastructure for Painted Pony's world class Montney reserves. AltaGas also continues to advance its other growth opportunities including the potential expansion of Blythe and its energy export initiatives.

AltaGas has granted the underwriters an over-allotment option to purchase, in whole or part, up to an additional 1,177,500 Common Shares at the Offering Price to cover over-allotments, if any, for a period of 30 days following the closing of the Offering. If the over-allotment option is exercised in full, gross proceeds from the Offering will be approximately $460 million.

The Common Shares will be offered in all provinces of Canada by way of a supplement under the Corporation's base shelf prospectus dated August 23, 2013. The Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing of the Offering is anticipated to occur on or about August 28, 2014.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the Offering has been qualified for distribution. The common shares offered are not, and will not be, registered under the securities laws of the United States of America, nor any State thereof, and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

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

This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to AltaGas or an affiliate of AltaGas, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the closing of the Offering, the use of proceeds of the Offering, expected expansion of AltaGas' fully integrated midstream business through the strategic alliance, business objectives, expected growth, and business projects and opportunities. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect AltaGas' current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in AltaGas' public disclosure documents. Many factors could cause AltaGas' actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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