AltaGas closes aggregate $500 million medium term note offering
AltaGas Ltd. today announced that it has completed its aggregate issue of $500 million of senior unsecured medium term notes with a coupon rate of 2.609 per cent, maturing on Dec. 16, 2022.
The net proceeds resulting from the offering will be used to pay down existing indebtedness under AltaGas’ credit facility and for general corporate purposes. As a result, AltaGas expects that the Offering will be leverage neutral.
According to AltaGas, because the coupon rate of the notes is lower than the borrowing rate of the existing debt, the company expects cost savings of approximately $5 million per annum as a result of the debt repayment.