Williams To Sell Canadian Businesses To Inter Pipeline - Quick Facts

(RTTNews) - Williams (WMB) and Williams Partners (WPZ) announced they have agreed to sell the companies' Canadian businesses to Inter Pipeline Ltd. (IPL.TO) for combined cash proceeds of C$1.35 billion or approximately $1.03 billion. Williams and Williams Partners plan to use the cash proceeds from the transaction to reduce borrowings on credit facilities. The transactions are expected to close in 2016.

In connection with the sale, Williams agreed to waive $150 million of incentive distribution rights in the quarter following closing to facilitate the Partnership's consent to the sale in recognition of the value of inter-company contracts. After taking into account this waiver, Williams Partners will receive net consideration of approximately $817 million and Williams will receive net consideration of approximately $209 million.

At closing, 25 percent of the proceeds will be deposited with the Canadian Revenue Authority or an escrow agent pending receipt of CRA tax clearance which is expected in late 2016 or early 2017. The companies do not expect a taxable gain in light of the substantial tax basis in the assets.