Coastal GasLink completes $7.15B bond offering, largest in corporate Canadian history

CALGARY — Calgary-based TC Energy Corp., the company behind the Coastal GasLink pipeline, says it has completed the largest corporate bond offering in Canadian history.

The company says it has concluded a $7.15-billion refinancing of its existing construction loan that helped pay the capital costs of building the Coastal GasLink pipeline.

That $14.4-billion, 670-kilometre project was completed last fall and was one of the largest energy infrastructure projects in recent Canadian history.

TC Energy says the refinancing was completed through a bond offering which was oversubscribed by approximately 3.6 times, a level of interest it says is "unprecedented" for the energy infrastructure industry.

The Coastal GasLink project ran into numerous construction-related hurdles and cost overruns, and TC Energy has been under pressure from investors and credit rating agencies to reduce its level of debt in the wake of the project's completion.

But the company says restructuring construction loans with bond proceeds is a standard post-construction activity for major projects.

This report by The Canadian Press was first published June 13, 2024.

Companies in this story: (TSX:TRP)

The Canadian Press