Canadian Pipeline Operator Wolf Midstream Plans C$600 Million Debut Bond Sale

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Canadian pipeline operator Wolf Midstream Canada LP is preparing a $600 million bond sale this week and plans to set up a revolving credit facility.

The debt will mature in five years, with options for Wolf to buy it back after two, according to documents seen by Bloomberg. The proposed offering received a provisional BB rating from DBRS Morningstar on Monday, as the ratings company cited price and volume risks in the company’s natural gas liquids segment.

Marketing will take place through July 9, and the transaction is expected to be sold this week. The firm will also establish a $650 million revolving credit facility due July 2028 to partially fund the next leg of its growth, according to the documents.

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Wolf Midstream didn’t respond to a request for comment. The Calgary-based private company owns and operates energy infrastructure assets in Western Canada and is backed by the Canada Pension Plan Investment Board. It hasn’t issued debt previously, according to data compiled by Bloomberg.

Wolf Midstream is expanding its NGL North line, a natural gas liquids recovery, transportation and separation system in Alberta. Expansion is projected to cost around $900 million, with an expected in-service date in 2027. Dow Inc. and AltaGas Ltd. are among the customers, according to the documents. The company is also developing a carbon sequestration facility known as the Lamont Carbon Hub, expected to be completed in 2026.

Bloomberg.com

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