ALA.PR.A Rockets to Premium on Massive Volume

AltaGas Ltd. has announced:

it has closed its previously announced public offering of 8,000,000 Cumulative Redeemable Five-Year Rate Reset Preferred Shares, Series A (the “Series A Preferred Shares”) at a price of $25 per Series A Preferred Share (the “Offering”). The Offering resulted in AltaGas receiving gross proceeds of $200 million.

The Offering was first announced on August 10, 2010 when AltaGas entered into an agreement with a syndicate of underwriters, led by TD Securities Inc., RBC Capital Markets and CIBC World Markets Inc.
Net proceeds from the Offering will be used to reduce outstanding indebtedness under AltaGas’ credit facilities, thereby strengthening AltaGas’ balance sheet and giving it the financial flexibility to support, among other things, construction activities related to the Forrest Kerr project.

The Series A Preferred Shares will commence trading today on the Toronto Stock Exchange under the symbol ALA.PR.A.

The offering was super-sized from $150-million to $200-million, announced, August 10.

ALA.PR.A was announced as a FixedReset 5.00%+266 on August 10.

It traded 989,638 shares today in a range of 25.19-42 before closing at 25.38-44, 17×50.

Vital statistics are:

Maturity Type : Call
Maturity Date : 2015-10-30
Maturity Price : 25.00
Evaluated at bid price : 25.38
Bid-YTW : 4.69 %

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