KKR and AIMCo in the amendment of the partnership and related agreements in respect of their equity investment in the $11.2B Coastal GasLink Pipeline

Osler acted for Kohlberg Kravis Roberts & Co (KKR) and Alberta Investment Management Corporation (AIMCo), in respect of the amendment of agreements in respect of their equity investment in Coastal GasLink Pipeline Limited Partnership (CGPLP) with TransCanada PipeLines Limited (TCPL). The amendments included TCPL’s commitment to make an equity contribution of approximately $1.9 billion to CGPLP, in connection with the settlement between, among others, CGPLP, TCPL and LNG Canada Development Inc. (LNG Canada). Additionally, there were amendments to the underlying project agreements that incorporate a revised cost estimate for the project of $14.5 billion (up from the previous estimate of $6.6 billion).

Osler also advised KKR and AIMCo with respect to TCPL’s and CGPLP’s negotiation of such settlement and amendments to the underlying project agreements with LNGC addressing and resolving disputes over certain incurred and anticipated costs of the Coastal GasLink pipeline project and the increase of the existing project-level credit facilities by $1.6 billion up to a total of $8.4 billion. In 2020, Osler acted for KKR and AIMCo in their acquisition of a 65% equity interest in CGPLP from TCPL. 

AIMCo is one of Canada’s largest and most diversified institutional investment managers and responsible for the investments of pension, endowment and government funds in Alberta.

KKR is a leading global investment firm with approximately US $500 billion in assets under management.

Osler, Hoskin & Harcourt LLP advised KKR and AIMCo with a team consisting of Craig Spurn, Aqeel Virk (Energy), Heidi Wong, Neal Ross, Michael Pede (Corporate), Colena Der (Tax) and Martha Martindale (Financial Services).