(Bloomberg) -- A C$1 billion ($737 million) bond deal to finance an Indigenous group’s purchase of a stake in a TC Energy Corp. natural gas pipeline system won’t close as planned on Monday.
“The parties are not in a position to proceed with the closing in the bond financing on September 9,” Calgary-based TC Energy said in an emailed statement, responding to inquiries from Bloomberg News. “Any applicable update on the closing of the equity transaction will be provided when available.” It didn’t give a reason for the delay.
Aspen Investments LP sold the bond on Wednesday in a dual tranche 30-year deal, Bloomberg reported. The deal drew 28 buyers, who put in orders covering more than three times the size of the offering.
TC Energy announced in July that it would sell a 5.3% stake in its NGTL System and Foothills Pipeline assets to a consortium that includes as many as 72 Indigenous communities in western Canada. At the time, it said it expected the deal to close in the third quarter.
The transaction is backed by the provincial government of Alberta through the Alberta Indigenous Opportunities Corp., which is providing an equity loan guarantee. AIOC and a representative for the Indigenous consortium didn’t immediately respond to requests for comment.
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