March 17 (Reuters) - Transcanada Corp TRP.TO :
* Transcanada to acquire Columbia Pipeline Group for US$13
billion
* Targeted annual cost, revenue and financing benefits of
approximately us$250 million
* Deal supports and may augment eight to 10 per cent
expected annual dividend growth through 2020
* Says aggregate transaction value of approximately US$13
billion including assumption of approximately US$2.8 billion of
debt
* As an interim measure, Transcanada has bridge term loan
credit facilities in place for up to US$10.3 billion
* Columbia is currently advancing US$5.6 billion of
commercially secured projects subject to normal course
regulatory and permitting processes
* Deal is subject to Columbia shareholder approval and
certain regulatory approvals
* Goldman, Sachs & Co. acted as lead financial advisor and
Lazard Freres & Co. Llc acted as financial advisor to Columbia
* Says targeted annual cost, revenue and financing benefits
from deal of approximately US$250 million
* Deal expected to be accretive to earnings per share in
first full year of ownership
* Says under terms of all-cash deal Columbia shareholders
will receive US$25.50 per common share
* Upon closing, Columbia will become an indirect
wholly-owned subsidiary of Transcanada and will cease to be a
publicly held corporation
* Says deal unanimously approved by boards of directors of
both companies
* Deal increases 2015 adjusted pro forma EBITDA from
regulated and long-term contracted assets to approximately 92
per cent
* Transcanada expects acquisition, to be accretive to
earnings per share in first full year of ownership.
* Proceeds from asset sales, along with new common equity
proportionate to size of transformative deal, expected to
comprise required funding
* Acquisition is expected to close in second half of 2016
subject to receipt of Columbia shareholder approval
* Wells Fargo (NYSE:WFC) Securities, Llc acted as exclusive financial
advisor to Transcanada.
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