RE:RE:RE:RE:RE:deal close date...MrBigger wrote: Give them time, they are paying 8 BILLION in cash for WGL That is only a portion of what they need to raise. They will do more equity raises.
As of now, this WGL deal is fully financed with debt, equity and some assets sale... See an excerpt of the NR below..... Am I missing something here?
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.... Transaction financing
The transaction is not subject to any financing contingency and AltaGas has a fully committed $4.95-billion (U.S.) bridge financing facility in place with J.P. Morgan Chase Bank, Toronto-Dominion Bank and Royal Bank of Canada to finance the transaction. Permanent financing of the transaction is expected to be achieved through an approximate $400-million private placement of subscription receipts to OMERS (the Ontario Municipal Employees Retirement System), the pension plan for Ontario's municipal employees, and a bought subscription receipt offering for gross proceeds of approximately $2.1-billion, launched concurrent with this announcement.
Tim Watson, chief financial officer of AltaGas, commented: "This private placement demonstrates the strength not only of AltaGas's reputation in the public markets, but also the strength of the combination with WGL being announced today. We look forward to having OMERS as an investor in our company for years to come." For further details, please see the press release issued by AltaGas contemporaneous with this release.
Furthermore, AltaGas will also finance the transaction with subsequent offerings of senior debt, preferred shares and hybrid securities, as well as selected AltaGas asset sales. AltaGas has a $2-billion (U.S.) tranche of its bridge facilities allocated to covering asset sales, which would be available for up to 18 months following closing of the transaction. Furthermore, AltaGas believes there are a number of attractive, actionable opportunities to monetize portions of its three businesses in a manner that supports AltaGas's long-term strategy of growing in attractive areas and maintaining a long-term, balanced mix of energy infrastructure assets. The timing of these subsequent offerings and asset sales is subject to prevailing market conditions, but are expected to be completed prior to the closing of the transaction.
AltaGas is committed to maintaining its financial strength following the closing of the transaction and will look to finance its significant organic growth portfolio in a manner consistent with AltaGas's past practices with several financing sources, including a more conservative dividend payout ratio resulting from transaction accretion, continuing dividend reinvestment, additional capital market opportunities in the United States, continued access to the Canadian capital markets, as well as maintaining strong investment-grade credit ratings.
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