Kinder Morgan Canada completes IPO

Kinder Morgan Canada Ltd. (TSX:KML) has completed the initial public offering of 102,942,000 restricted voting shares of the company (restricted voting shares) at a price to the public of $17.00 per share (the offering price) for total gross proceeds of approximately C$1.75 billion. The proceeds of the offering will be used by the company to indirectly acquire from Kinder Morgan Inc. an approximate 30% interest in a limited partnership that holds the Canadian business of Kinder Morgan. Kinder Morgan Inc. will use the proceeds it receives to pay down debt. Closing of the offering removed the final condition to Kinder Morgan Inc.’s investment approval for the Trans Mountain Expansion Project.

The offering was made through a syndicate of underwriters co-led and joint bookrun by TD Securities Inc. and RBC Capital Markets. The underwriters have been granted an over-allotment option to purchase up to an additional 15,441,300 restricted voting shares at the offering price, exercisable in whole or in part, from time to time, until 30 days after closing of the offering.

At the closing of the offering, Kinder Morgan Inc. holds approximately 70% of the issued and outstanding shares of Kinder Morgan Canada Ltd. through its indirect ownership of 242,058,000 special voting shares. Kinder Morgan Inc. also holds an approximate 70% interest in the limited partnership that holds the business. The restricted voting shares will begin trading today on the Toronto Stock Exchange under the symbol 'KML'.


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