Calgary-based TC Energy Corporation (TSX, NYSE: TRP) has recently revealed the successful closing of a notes offering worth approximately $7.9 billion Canadian-dollar equivalent by its subsidiary, South Bow Corporation. The notes offering is a crucial step in the spinoff of TC Energy’s Liquids Pipelines business and has witnessed significant market interest. The spinoff Transaction remains on schedule and is expected to be finalized in early Q4 of 2024.
Factual Summary:TC Energy Corporation (TRP) announced the closure of a notes offering for its subsidiary, South Bow Corporation, on August 28, 2024.2. The notes offering raised approximately $7.9 billion Canadian-dollar equivalent in aggregate principal amount.3. The purpose of the notes offering is to establish an independent, investment-grade debt capital structure for the spinoff of TC Energy’s Liquids Pipelines business.4. The strong market interest in the notes offering showcases the market’s confidence in the spinoff Transaction.5. This successful closure of the notes offering marks one of the final milestones required to complete the spinoff by early Q4 of 2024.6. TC Energy aims to transform its Liquids Pipelines business into an independent entity, separating it from its core operations.7. In the fourth quarter of 2023, TC Energy Corporation recorded a return on assets (ROA) of 32.33%, significantly exceeding the company’s average return on assets of 0%.
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