Highlights 

  • AltaGas finalizes USD 460M equity financing to reduce leverage and support growth. 
  • Fitch and S&P revised the outlooks following MVP retention and equity plan. 
  • The company maintains full ownership in MVP, emphasizing long-term value creation. 

AltaGas Ltd. (TSX:ALA) announced the completion of its previously reported bought deal equity financing, totaling 11,615,000 common shares, which includes 1,515,000 shares issued through the over-allotment option. The shares were priced at USD 39.65 each, generating total gross proceeds of approximately USD 460 million. 

The offering, first disclosed on November 3, 2025, was managed by a syndicate of underwriters led by CIBC Capital Markets, TD Securities Inc., RBC Capital Markets, and Scotiabank. AltaGas stated that the funds raised will be used to lower debt levels and finance future growth projects. 

The company noted that this financing approach is expected to deliver equivalent near-term de-leveraging compared with a full sale of its Mountain Valley Pipeline interest, while supporting stronger long-term financial flexibility as MVP expansion projects progress. 

Retention of MVP Ownership 

AltaGas confirmed its decision to retain ownership in the Mountain Valley Pipeline as a long-term investment following a comprehensive sales process that attracted multiple potential buyers. The company determined that continued ownership provides greater long-term shareholder value. 

The decision was driven by several factors, including outperformance of the MVP Mainline, favorable expectations for MVP Boost, and constructive progress on MVP Southgate. AltaGas anticipates that MVP project-level EBITDA will rise significantly by the second half of 2028 once both expansion projects are operational. 

Credit Rating Outlook Revisions 

Following the financing and MVP retention announcements, S&P Global Ratings and Fitch Ratings released updated credit outlooks for AltaGas. 

  • S&P revised the company’s outlook to Positive from Negative while reaffirming its BBB- rating, citing improved FFO-to-debt metrics over the next two years. 
  • Fitch revised its outlook to Stable from Negative and maintained its BBB rating, highlighting improving leverage trends, steady utility cash flows, and ongoing support from the equity raise. 

These outlook adjustments reflect credit agencies’ recognition of AltaGas’ capital structure actions and anticipated cash flow improvements linked to upcoming projects. 

About AltaGas 

AltaGas Ltd. is a North American energy infrastructure company that connects customers and markets to affordable, reliable energy sources. Its diversified business includes utilities, midstream, and export operations.