TransCanada Sells 4 Northeast Powergen Assets, 1 in Marcellus
Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century (the Marcellus/Utica), so they bought Columbia Pipeline Group--closing on the sale in July 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). The original deal cost TransCanada $10 billion (U.S. dollars), and later TransCanada bought out the remaining portion of Columbia it didn't own for another $915 million (see TransCanada Raising Big $ to Complete Buyout of Columbia Pipeline). In order to pay for everything, both the original purchase and buying out the rest of Columbia, TransCanada announced floated $3.2 billion (Canadian) in new stock, and entered an agreement to sell off their electric power assets in New England for $3.7 billion (U.S.). On Monday, TransCanada announced the closing of the deals and the transfer of their electric power assets--3 natgas-fired plants, including one located in the Marcellus region (Lebanon, PA), and one wind farm. According to their announcement, TransCanada will hit their asking price of $3.7 billion, using the money to pay off "bridge loans" involved in financing the Columbia Pipeline deal...
To view this content, log into your member account. (Not a member? Join Today!)