Bank of China contributes $35 million CAD to the $1.5 billion CAD tranche of a $1.52 billion CAD syndicated loan to Wolf Midstream for the acquisition of a 100% stake in the Stonefell Terminal and a 50% stake in the Access Pipeline

Project narrative

On March 22, 2018, financial close was reached on a deal in which a syndicate of 17 banks — including the Bank of China (BOC) — entered into a $1.520 billion CAD ($1.17877 billion USD) syndicated loan agreement with Wolf Midstream Inc. — Calgary-based private company that owns and operates energy assets in Western Canada and is backed by the Canada Pension Plan Investment Board (CPP Investments) — for the acquisition of Stonefell Terminal and a 50% interest in the Access Pipeline. This loan was divided into two tranches: a $1.500 billion CAD ($1.16326 billion USD) loan tranche with a maturity period of four years and a final maturity date of March 22, 2022; and a $20.00 million CAD ($15.51 million USD) revolver tranche with a maturity period of four years and a final maturity date of March 22, 2022 provided exclusively by RBC Capital Markets. The proceeds were to be used by the borrower to acquire a 100% ownership stake in the Stonefell Terminal, a 900,000 barrel oil storage terminal near Edmonton, Alberta connected to MEG Energy's production facilities to distribution connections infrastructure, and a 50% ownership stake in the Access Pipeline, a blended bitumen and diluent pipeline from production facilities in Christina Lake in Northeastern Alberta to Edmonton from the seller MEG Energy Corp. At the time of the acquisition, Wolf Midstream already owned a 50% stake in Access Pipeline, so the purchase would give it full ownership.. The acquisition included a 30-year term commitment from MEG for transportation services on Access and use of the Stonefell Terminal and the conversion of Access' additional 16-inch unutilized pipeline to transport natural gas liquids (stretching from the Sturgeon terminal in Alberta's Industrial Heartland to the Christian Lake area. BOC contributed $35.00 million CAD ($27.14 million USD) to the $1.5 billion CAD loan tranche. In addition to BOC, the following lenders contributed the respective amounts to the $1.5 billion CAD loan tranche: Export Development Canada (EDC) ($120.00 million CAD; $93.06 million USD), Alberta Investment Management Corporation (AIMCo) ($55.00 million CAD; $42.65 million USD), Bank of Montreal ($120.00 million CAD), Barclays Bank Plc ($55.00 million CAD), Bank of America Merrill Lynch (BAML) ($55.00 million CAD), CIBC Capital Markets ($160.00 million CAD; $124.08 million USD), Federation Des Caisses Desjardins Du Quebec (FCDQ) ($45.00 million CAD; $34.90 million USD), HSBC Bank ($45.00 million CAD), JPMorgan Chase Bank N.A. ($55.00 million CAD), National Bank Financial Inc. (NBF) ($120.00 million CAD), RBC Capital Markets ($140.00 million CAD; $108.57 million USD), the Bank of Nova Scotia (Scotiabank) ($160.00 million CAD; $124.08 million USD), TD Securities Inc. ($160.00 million CAD), Wells Fargo Bank N.A. ($45.00 million CAD), ATB Financial ($55.00 million CAD), and SBI Canada Bank ($35.00 million CAD). CIBC Capital Markets, RBC Capital Markets, Scotiabank Global Banking and Markets, and TD Securities served as arrangers. Wolf Midstream contributed $90.00 million CAD ($69.80 million USD) in capital for the $1.610 billion CAD ($1.24857 billion USD) acquisition. The transaction was announced on February 8, 2018 and expected to close in the first quarter of 2018. The transaction closed on March 22, 2018.