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With Painted Pony deal done, AltaGas to issue $400-million of stock
Jeffrey JonesESG and Sustainable Finance Reporter
Calgary

This article was published more than 9 years ago. Some information may no longer be current.

A natural gas flaring.HENRY ROMERO/Reuters

AltaGas Ltd. is issuing $400-million of shares to finance its strategic alliance with Painted Pony Petroleum Ltd and other expansion initiatives.

AltaGas, the gas distribution and energy services company, is issuing 7.85-million shares at $51 apiece in a bought deal led by TD Securities Inc., BMO Nesbitt Burns and RBC Dominion Securities. An overallotment option would allow the underwriters another $60-million of stock.

On Tuesday, AltaGas said it struck a deal with Painted Pony, which drills in the Montney region of northeast B.C., to build a $350-million gas processing plant, in which the exploration company would get guaranteed access to most of the capacity. Under the announced 15-year strategic alliance, AltaGas will also buy a $50-million stake in Painted Pony.

AltaGas said it would use some of the proceeds from its stock offering to reduce bank debt and fund capital spending.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 19/04/24 10:58am EDT.

SymbolName% changeLast
ALA-T
AltaGas Ltd
+1.59%29.94
B-X
Bcm Resources Corp
-7.14%0.065
RY-N
Royal Bank of Canada
+1.11%97.98
RY-T
Royal Bank of Canada
+0.82%134.61
Y-T
Yellow Pages Ltd
+0.52%9.7

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