TC Energy announces sale of Portland Natural Gas Transmission System

TC Energy and its partner Northern New England Investment Company, a subsidiary of Energir L.P., have entered into a purchase and sale agreement to sell Portland Natural Gas Transmission System to BlackRock, through a fund managed by its Diversified Infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners, for a gross purchase price of $1.14B, which includes the assumption of $250M of outstanding Senior Notes held at PNGTS. This transaction implies a valuation of approximately 11.0 times reported 2023 comparable EBITDA. The cash proceeds will be split pro-rata according to the current PNGTS ownership interests (TC Energy 61.7%, Energir 38.3%) and will be paid at closing, subject to certain customary adjustments. As part of the transaction, the Buyer will assume the outstanding Senior Notes held at PNGTS and currently consolidated on TC Energy’s balance sheet. The transaction is expected to close in mid-2024, subject to the receipt of regulatory approvals and customary closing conditions.