AltaGas Ltd.
TSX : ALA

AltaGas Ltd.

March 03, 2017 08:09 ET

AltaGas Ltd. Announces Closing of $118 Million Subscription Receipt Over-Allotment Option

CALGARY, ALBERTA--(Marketwired - March 3, 2017) -

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

AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that, in connection with its recently completed offerings of 67,800,000 subscription receipts (the "Subscription Receipts") at an issue price of $31.00 per Subscription Receipt (the "Offering Price") on a bought deal basis (the "Bought Deal Offering") and 12,910,000 Subscription Receipts on a private placement basis (the "Private Placement Offering" and, together with the Bought Deal Offering, collectively the "Offerings"), the over-allotment option granted to the underwriters on the Bought Deal Offering (the "Over-Allotment Option") has been partially exercised for an additional 3,800,000 Subscription Receipts at the Offering Price for aggregate gross proceeds of approximately $118 million. The sale of the additional Subscription Receipts today pursuant to the Over-Allotment Option brings the aggregate gross proceeds from the Offerings to approximately $2.6 billion.

The underwriting syndicate for the Bought Deal Offering was co-led by TD Securities Inc., RBC Capital Markets and J.P. Morgan Securities Canada Inc.

The net proceeds from the Offerings will be used to partially finance the previously announced $8.4 billion acquisition of WGL Holdings, Inc. ("WGL") (the "Acquisition"). WGL is the sole shareholder of Washington Gas Light Company, a regulated natural gas utility company headquartered in Washington, D.C. WGL also owns non-regulated power, midstream and energy marketing businesses in the United States.

The Subscription Receipts currently trade on the Toronto Stock Exchange under the symbol ALA.R.

All references to dollar amounts contained herein are to Canadian dollars unless otherwise indicated.

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 use of proceeds of the Offerings, the proposed acquisition of WGL, 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, that the timing for satisfying all conditions to closing of the Acquisition will proceed as expected and that the Offerings will close on the terms and at the times described herein, as well as AltaGas' views with respect to 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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