KKR

Acting for KKR and AIMCo in their joint acquisition of a combined 65% equity interest from TC Energy in the $6.8B Coastal GasLink Pipeline Project

Client

KKR

Value

-

Service

Mergers and Acquisitions

Date Closed

May 2020

Industry

Energy

Lead Office

Calgary

 

On December 26, 2019, KKR announced the signing of an agreement (alongside Alberta Investment Management Corporation) to acquire a 65% equity interest in the Coastal GasLink Pipeline Project from TC Energy Corporation. KKR’s investment will be made through a separately managed infrastructure account in partnership with the National Pension Service of Korea. The funding will be used to finance the construction of 670 kilometers of natural gas pipeline and associated facilities. Upon completion of the Coastal GasLink Pipeline Project, the pipeline will have the ability to reduce global greenhouse gas emissions by up to 60-90 million tonnes per year.

KKR is a global investment firm focused on managing alternative asset classes including private equity, energy, infrastructure, real estate and credit. KKR is specialized in investing its own capital in conjunction with the capital it manages to provide financing solutions and investment opportunities through its capital markets business.

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than $115 billion of assets under management, invested on behalf of 31 pension, endowment and government funds in the Province of Alberta.

TC Energy is a North American energy company with a focus on operating pipelines, storage facilities and power-generation plants in Canada, the United States and Mexico.

Osler, Hoskin & Harcourt LLP advised KKR (and led negotiations and due diligence on behalf of KKR and AIMCo) with a team consisting Craig Spurn, Lorne Carson, Neal Ross, Heidi Wong, Kelsey Armstrong, Allan Morgan (Corporate), Edward Rowe, Alan Kenigsberg, Colena Der (Tax), Richard King, Justin Fontaine (Regulatory, Environmental, Aboriginal and Land), Kaeleigh Kuzma, Gajan Sathananthan (Competition/Antitrust & Foreign Investment), Dana Saric (Financial Services) and Aqeel Virk (Energy).