Bank of China contributes $30 million CAD to the $710 million CAD term loan tranche of a $720 million CAD syndicated loan to Wolf Midstream for the acquisition of a 50% interest in the Access Pipeline

Project narrative

On October 6, 2016, financial close was reached on a deal in which a syndicate of 13 banks — including the Bank of China (BOC) — entered into a $720.00 million CAD ($546.05 million 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 a 50% interest in the Access Pipeline. This loan was divided into two tranches: a $710.00 million CAD ($538.46 million USD) term loan tranche with a maturity period of four years, a final maturity date of October 6, 2020, and an amortizing loan repayment option; and a $10.00 million CAD ($7.58 million USD) working capital tranche with a maturity period of four years and a final maturity date of October 6, 2020 exclusively provided by the Royal Bank of Canada (RBC). The proceeds were to be used by the borrower for the acquisition of a 50% ownership stake in the Access Pipeline system, a 345-kilometer long heavy oil transportation dual-pipeline that connects facilities in northeast Alberta to Edmonton with two distinct pipeline networks: the Diluent System and the Bitumen Blend Pipeline, from seller Oklahoma-based oil and gas company Devon Energy. In addition to the debt, Wolf Midstream provided $680.00 million CAD ($515.71 million USD) in equity for the $1.400 billion CAD ($1.06176 billion USD) acquisition, which was also supported by a 25-year ship-or-pay transportation service agreement between Wolf and Devon executed as part of the deal. BOC contributed $30.00 million CAD ($22.75 million USD) to the $710 million CAD term loan tranche. In addition to BOC, the following lenders contributed the respective amounts to the $710 million CAD term loan tranche: Bank of Montreal ($89.00 million CAD; $67.50 million USD), Barclays Bank Plc ($25.00 million CAD; $18.96 million USD), Bank of America Merrill Lynch (BAML) ($25.00 million CAD), Canadian Imperial Bank of Commerce (CIBC) ($89.00 million CAD), Desjardins Securities Inc. ($30.00 million CAD), National Bank Financial Inc. (NBF) ($75.00 million CAD; $56.88 million USD), RBC ($79.00 million CAD; $59.91 million USD), the Bank of Nova Scotia (Scotiabank) ($89.00 million CAD), Toronto-Dominion Bank (TD Bank) ($89.00 million CAD), Wells Fargo Bank N.A. ($30.00 million CAD), ATB Financial ($30.00 million CAD), and SBI Canada Bank ($30.00 million CAD). The transaction was announced on July 18, 2016 and then closed on October 6, 2016.