A Mayer Brown team advised TC Energy Corporation on its agreement to monetize a 40% interest in its Columbia Gas Transmission, LLC and Columbia Gulf Transmission, LLC systems. Columbia Gas and Columbia Gulf will be held in a new joint venture partnership with Global Infrastructure Partners. Total proceeds for the transaction are expected to be US$3.9 billion in cash, to be paid at closing, subject to certain customary adjustments.
The value of the 40% equity interest implies an enterprise value to a comparable EBITDA multiple of approximately 10.5 times TC Energy’s base 2023 outlook and expected run-rate capital structure for the partnership entity. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
The team was led by Corporate & Securities partners Marc Sperber (Chicago) and Pete Wolf (NorCal) and included: Corporate & Securities partners Jeff Dobbs, Phil Lau (both Houston), John Berkery (NY), Jen Carlson (Salt Lake City), Jenn Keating, Marina Aronchik (both Chicago) and Mark Williams (DC) and associates Tom Santora, Megan Richard (both Chicago), Ana Tobar, Federica Castro, Ana Estrada and Jessie Ames (all Houston); Tax partner Remmelt Reigersman and counsel David Goett (both NorCal); Real Estate Markets partner David Saye (Charlotte); Employment & Benefits partner Debbie Hoffman (Chicago); Banking & Finance partner Meir Dominitz (NY); Litigation & Dispute Resolution partner Brian Massengill and IP counsel Emily Nash (both Chicago).