Narrative
Full Description
Project narrative
On June 28, 2021, financial close was reached on a deal in which a syndicate of 17 banks — including the Bank of China (BOC) and China Construction Bank Corporation (CCB) — entered into a $1.665 billion CAD ($1.35263 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) — and Wolf Carbon Solutions Inc. — a special purpose vehicle (SPV) that operates the Alberta Carbon Trunk Line — and Wolf Pipeline Inc. — a special purpose vehicle (SPV) that operates the Access Pipeline — for the Access Pipeline and Alberta Carbon Trunk Line (ACTL) 2021 Refinancing Project. This loan was divided into three tranches: a $1.340 billion CAD ($1.0886 billion USD) term loan tranche with a maturity period of four years; a $275.00 million CAD ($223.41 billion USD) term loan tranche (referred to as the 'construction facility' with a maturity period of four years; and a $50.00 million CAD ($40.62 million USD) operating facility with a maturity period of four years provided exclusively by the Royal Bank of Canada (RBC). The proceeds were to be used by the borrowers for the refinancing of the Access Pipeline (also known as the Alberta Oil Pipeline), a 345-kilometer-long heavy oil transportation pipeline that connects northeast Alberta to Edmonton, and the Alberta Carbon Trunk Line (ACTL), a 240-kilometer-long pipeline along with a CO2 storage and enhanced oil recovery (EOR) located in Alberta; specifically, it was refinancing two existing term loans for Wolf Carbon Solutions and Wolf Pipeline and an incremental construction term loan for the build out of NGL North Project, a natural gas liquids (NGL) recovery, transportation, and separation system with a production capacity of about 70,000 barrels daily of NGL including ethane, propane, butane and condensate. BOC and CCB each contributed $33.19 million CAD ($26.96 million USD) to the $1.34 billion CAD term loan tranche. Record ID#102237 captures BOC's contribution. Record ID#102238 captures CCB's contribution. In addition to BOC and CCB, the following lenders contributed the respective amounts to the tranche: Bank of America ($49.78 million CAD; $40.44 million USD), Bank of Montreal ($136.90 million CAD; $111.22 million USD), Barclays Bank Plc ($33.19 million CAD), Canadian Imperial Bank of Commerce (CIBC) ($136.90 million CAD), Fédération des caisses Desjardins du Québec (FCDQ) ($33.19 million CAD), HSBC Bank ($112.01 million CAD; $91.00 million USD), JPMorgan Chase Bank N.A. ($49.78 million CAD), Mizuho Bank ($82.97 million CAD; $67.40 million USD), National Bank of Canada ($136.90 million CAD), RBC ($19.58 million CAD; $15.91 million USD), SBI Canada Bank (SBIC) ($33.19 million CAD), the Bank of Nova Scotia (Scotiabank) ($136.90 million CAD), Sumitomo Mitsui Banking Corporation (SMBC) ($49.78 million CAD), Toronto-Dominion Bank (TD Bank) ($136.90 million CAD), and ATB Financial ($49.78 million CAD). BOC and CCB each contributed $6.81 million CAD ($5.53 million USD) to the $275 million CAD term loan tranche. Record ID#102239 captures BOC's contribution. Record ID#102240 captures CCB's contribution. In addition to BOC and CCB, the following lenders contributed the respective amounts to the tranche: Bank of America ($10.22 million CAD; $8.30 million USD), Bank of Montreal ($28.09 million CAD; $22.82 million USD), Barclays ($6.81 million CAD), CIBC ($28.09 million CAD), FCDQ ($6.81 million CAD), HSBC ($17.03 million CAD; $13.84 million USD), JPMorgan ($10.22 million CAD), Mizuho ($10.22 million CAD), National Bank of Canada ($28.09 million CAD), RBC ($19.58 million CAD; $15.91 million USD), SBIC ($6.81 million CAD), Scotiabank ($28.09 million CAD), SMBC ($10.22 million CAD), TD Bank ($22.98 million CAD; $18.67 million USD), and ATB Financial ($10.22 million CAD). On June 29, 2022, financial close was reached on a deal in a syndicate of 16 banks — including BOC and CCB — entered into an amendment with the borrowers to up-size the $275 million CAD term loan tranche of the $1.6655 billion CAD syndicated loan; specifically, the lenders agreed to provide an additional $325.00 million CAD ($252.58 million USD) to the tranche, raising its face value to $600 million CAD and the face value of the entire loan to $1.99 billion CAD. The up-sized $325 million CAD of debt carried a maturity period of four years. BOC and CCB each contributed $8.17 million CAD ($6.35 million USD) to the $325 million CAD up-sizing. Record ID#102241 captures BOC's contribution. Record ID#102242 captures CCB's contribution.