Kinder Morgan Canada Ltd. closed its offering of cumulative redeemable minimum rate reset preferred series 3 shares for total net proceeds of about C$250 million, according to a Dec. 15 news release.
The company issued 10,000,000 series 3 preferred shares, including the 2,000,000 overallotment option given to the underwriters, which was exercised in full.
Kinder Morgan Inc.'s Kinder Morgan Canada intends to use proceeds from the offering to indirectly subscribe for preferred units in Kinder Morgan Canada LP, which would use the proceeds to help finance the Trans Mountain expansion project, the Base Line terminal project and potential future growth opportunities. Kinder Morgan Canada LP also intends to use the proceeds to repay debt and for general corporate purposes.
Dividends on the shares, expected at C$1.3000 per share annually, will be payable on the 15th of February, May, August and November as and when declared by the board of Kinder Morgan Canada Ltd., for the initial fixed rate period to but excluding Feb. 15, 2023. The first dividend of 22.082 Canadian cents will be payable Feb. 15, 2018, if declared.
The shares will now trade on the TSX under the symbol KML.PR.C.
