TC Vitality Corp. and its companion Northern New England Funding Co. Inc., a subsidiary of Energir LP, have agreed to promote the Portland Pure Fuel Transmission System (PNGTS). TC Vitality stated in a media launch that a purchase order and sale settlement was signed to promote the asset to BlackRock, by a fund managed by its Diversified Infrastructure enterprise and funding funds managed by Morgan Stanley Infrastructure Companions.
The deal is valued at $1.14 billion, together with the belief of $250 million of excellent senior notes held at PNGTS. This transaction implies a valuation of roughly 11.0 occasions the reported 2023 comparable EBITDA, TC Vitality stated.
PNGTS is a 475-kilometer (295-mile), FERC-regulated transporter of pure fuel serving the higher New England and Atlantic Canada markets. The pipeline receives pure fuel from the Trans Quebec and Maritimes (TQM) Pipeline through the Canadian Mainline.
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TC Vitality stated it’ll present customary transition companies and can work collectively with the client to make sure the protected and orderly transition of this essential pure fuel system.
“Right this moment’s announcement represents continued progress towards reaching our 2024 strategic precedence of enhancing our steadiness sheet power by delivering roughly $3 billion in asset divestitures”, stated François Poirier, TC Vitality’s President and Chief Government Officer. “We’re dedicated to reaching our 4.75 occasions debt-to-EBITDA higher restrict by year-end and count on to have additional asset divestiture bulletins by the 12 months.
“This sale of a non-core asset at a robust valuation is a singular alternative to assist our capital rotation and deleveraging priorities whereas persevering with to satisfy the wants of the communities PNGTS serves”.
The money proceeds shall be break up pro-rata in keeping with the present PNGTS possession pursuits (TC Vitality 61.7 %, Energir 38.3 %) and shall be paid at closing, topic to sure customary changes, TC Vitality stated.
TC Vitality stated that the transaction is predicted to shut in mid-2024, topic to the receipt of regulatory approvals and the satisfaction of customary closing situations.
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