Deals this week: TransCanada, Enbridge, HollyFrontier


TransCanada Corporation has announced the upsizing of a public issue of 40 million series 15 cumulative redeemable preference shares, at a price of $18.46 a unit.

The company intends to raise $716.15 through the offering, which was upsized from 20 million preference shares.

Scotia Capital, BMO Nesbitt Burns, CIBC World Markets, RBC Dominion Securities, TD Securities, National Bank Financial, HSBC Securities (Canada), GMP Securities, and Peters & Co. are the underwriters to the company for the issue.

The amount raised from the offering is intended to be used by TransCanada to reduce its short-term obligations and for general corporate purposes.

"The amount raised from the offering is intended to be used by TransCanada to reduce its short-term obligations and for general corporate purposes."

The public issue is scheduled for completion on or before 21 November.

Enbridge intends to raise $553.14m through an upsized offering of series 17 cumulative redeemable preference shares.

The issue was upsized from 20 million to 30 million units.

The company has appointed TD Securities, CIBC Capital Markets, Scotiabank, and RBC Capital Markets as underwriters for the offering, which is due for closure on or before 23 November.

The proceeds from the offering are intended to be used by Enbridge to partly finance its capital projects and reduce existing debt, and partly for general corporate purposes.

HollyFrontier Corporation has announced pricing of a public offering of senior notes to raise $750m. The notes are priced at 100.098% of principal amount and will yield a 5.86% coupon rate with semi-annual payments until they expire on 1 April 2026.

The company has appointed Citigroup Global Markets, Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, MUFG Securities Americas and TD Securities (USA) as joint book-running managers.

The proceeds from the offering are intended to be used by the company for general corporate purposes.

The public issue is scheduled for closure on 21 November.

Santos has agreed to acquire a 20% stake in Petroleum Prospecting License (PPL) 402 in Papua New Guinea, from Oil Search Limited and Exxon Mobil Corporation (ExxonMobil).

The PPL 402 extends across an area of approximately 510km², approximately 40km north-west of the Hides gas field and production facilities in Papua New Guinea.

Upon completion of the transaction, the license will be owned by ExxonMobil (42.5%), Oil Search (37.5%, operator) and Santos (20%).

The deal will allow Santos to expand its oil and gas assets portfolio in Papua New Guinea.

Plains All American Pipeline intends to raise $750m through the issue of 4.5% senior notes, due 15 December 2026, in a public offering.

CIBC World Markets, Fifth Third Securities, ING Financial Markets, PNC Capital Markets, Regions Securities, and U.S. Bancorp Investments are the underwriters to Plains All American for the offering, which is expected to be closed on 22 November.

The amount raised from the issue is intended to be used by the company for general partnership purposes, including debt repayment, acquisitions, capital outlays and working capital requirements.