TC Energy Corp. has signed an agreement with a syndicate of underwriters led by RBC Capital Markets and Scotiabank, for the purchase of 28.4 million common shares of the company, representing gross proceeds of about $1.8 billion.
TC Energy has granted the underwriters the option to purchase as much as 2.84 million additional common shares at the same offering price of $63.50 per share. If the option is exercised in full, the aggregate gross proceeds from the offering will be about $2 billion.
The net proceeds from the offering will be used to help fund costs associated with the construction of the Southeast Gateway Pipeline, a $4.5 billion, 715-kilometer (444-mile) offshore natural-gas pipeline in the southeast region of Mexico.
The offering is expected to close on or about Aug. 10.