TransCanada Corporation has entered into agreements to sell a 45 per cent interest in each of Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC (Bison) to TC PipeLines, LP (NYSE:TCP) (the Partnership) for an aggregate purchase price of US$1.05 billion, which includes US$146 million for 45 per cent of GTN's debt. The sale is expected to close in July 2013 and is subject to regulatory approvals and certain closing conditions.

"The proceeds from the sale of a 45 per cent interest in both GTN and Bison will contribute to funding a portion of TransCanada's capital program that includes $26 billion of commercially-secured projects," said Russ Girling, president and chief executive officer of TransCanada. "The transaction demonstrates one of the many funding options available to TransCanada to finance our current capital commitments.

"Selling assets to TC PipeLines, LP not only provides us with an attractive source of capital, but it also allows the Partnership to grow its earnings, cash flow and distributions to its unitholders. The possibility of selling further interests in our mature U.S. natural gas pipeline assets, through a series of dropdowns, provides us with a significant amount of financial flexibility," added Girling.

Tags: TransCanada Corporation