raised $800-million to acquire British environmental consultant RPS Group PLC. The two successful equity offerings ended a prolonged drought for new issues, and Bay Street bankers expect more companies to tap markets in the coming weeks.
Last week, Calgary-based TC Energy sold stock to pay the equity portion of its planned Southeast Gateway Pipeline, a US$4.5-billion, 715-kilometre offshore project that will carry U.S. natural gas to southern Mexico. The new pipeline is expected to open in three years, and the utility will borrow to pay for the remainder of the project.
“We generally do not see multiyear pipeline construction projects as having their required equity financed on day one,” said Mr. Hope in a report. “However, in this case, we believe it makes sense given TC Energy’s elevated credit metrics.” Pension plans and other institutional investors are becoming increasingly common sources of capital for takeovers; these financings are known as private investments in public equities, or PIPEs. In a recent study, law firm Fasken found that the size of PIPEs is growing – the average stock sale was $113-million last year, up 18 per cent from 2020.