Sunday, June 18, 2017
Project has Funding
KM get $5.5 billion line of credit for expansion
Ali Hounsell, Transmountain/Website photos
inder Morgan Canada Limited announced today that KML has, indirectly through its affiliates, entered into definitive agreements establishing a $4.0 billion revolving construction credit facility for the purposes of funding the development, construction and completion of the Trans Mountain expansion project, a $1.0 billion revolving contingent credit facility for the purposes of funding, if necessary, additional Trans Mountain expansion project costs (and, subject to the need to fund such additional costs, meeting NEB-mandated liquidity requirements) and a $500 million revolving working capital facility, which is available for general corporate purposes, including working capital.
"The syndication of the credit facilities was oversubscribed," said Ian Anderson, KML President. "We are gratified by the outstanding level of support for this project within the financial community."
The above-described credit facilities have a term of five years and are guaranteed by KML, Kinder Morgan Canada Limited Partnership and other operating entities comprising the KML's business.
The credit facilities provide for customary positive and negative covenants, including limitations on liens, dispositions, amalgamations, liquidations and dissolutions. For a summary of the material terms of the credit facilities, see "Description of Indebtedness – Credit Facility" in KML's long form prospectus dated May 25, 2017. A copy of the credit agreement associated with the credit facilities will be available under KML's profile on SEDAR at www.sedar.com.
About Kinder Morgan Canada Limited (KML)
Kinder Morgan Canada Limited will operate the business of Kinder Morgan Canada Limited Partnership (in which the Company owns an approximate 30% interest), comprised of a number of pipeline systems and terminal facilities including the Trans Mountain pipeline, the Cochin pipeline, the Puget Sound and
Trans Mountain Jet Fuel pipelines, the Westridge marine and Vancouver Wharves terminals in British Columbia as well as various crude oil loading facilities in Edmonton, Alberta.
The Trans Mountain pipeline currently transports approximately 300,000 barrels per day (bpd) of crude oil and refined petroleum products from the oil sands in Alberta to Vancouver, British Columbia and Washington state. On November, 29, 2016, the Government of Canada granted approval for the $7.4 billion Trans Mountain expansion project, to increase the nominal capacity of the system to 890,000 bpd.
For more information, visit www.transmountain.com