Inter Pipeline closes $527.5M acquisition of the remaining 15% interest in the Cold Lake Pipeline System from Canadian Natural

On December 16, 2016, Inter Pipeline Ltd. (“Inter Pipeline”) completed its acquisition of the remaining 15 per cent interest in the Cold Lake pipeline system from Canadian Natural Resources Limited (“Canadian Natural”) for $527 million, subject to closing adjustments. As a result of the acquisition, Inter Pipeline assumes 100 per cent ownership of the Cold Lake pipeline system.

Canadian Natural received $350 million in cash and $177.5 million through the issuance of 6,417,740 Inter Pipeline common shares in consideration for its Cold Lake ownership interest. Funding of the cash component of the acquisition was provided from proceeds of a new 10-year medium term note offering.

Concurrent with the closing of this acquisition, Inter Pipeline has entered into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North SAGD oil sands project. The agreement will trigger the construction of a new $125-million pipeline connection to the Kirby North production facility, with service targeted for the first quarter of 2020.

Inter Pipeline was represented internally by Anita Dusevic Oliva, Vice President, Legal, with a team including Kent Chicilo, Senior Legal Counsel and Kristen Simpson, Legal Counsel. Torys LLP acted as counsel to Inter Pipeline, with a team including Chris Christopher, Alanah Wiberg, and Carleigh Knoll (energy), Dany Assaf (competition), Craig Maurice (tax), David Bish (bankruptcy/insolvency) and Lianne Tysowski (securities). Burnet, Duckworth & Palmer LLP acted as counsel to Inter Pipeline in relation to financing matters, with a team including William Maslechko, James Kidd and Jessica Brown (securities) and Heather DiGregorio and Brandon Holden (tax).

Canadian Natural was represented by an internal team comprised of Paul Mendes, Vice-President, Legal, General Counsel & Corporate Secretary and Peter Andrekson, Assistant Corporate Secretary & Legal Counsel.