AltaGas Ltd. Announces Closing of $2.5 Billion Subscription Receipt Offering Comprised of $2.1 Billion Bought Deal and $400 Million Private Placement

CALGARY, ALBERTA--(Marketwired - Feb. 3, 2017) -

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AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that it has completed its previously announced public offering of 67,800,000 subscription receipts (the "Subscription Receipts"), on a bought deal basis, at an issue price of $31.00 per Subscription Receipt (the "Offering Price"), for total gross proceeds of approximately $2.1 billion (the "Public Offering"). Additionally, AltaGas has completed the private placement (the "Private Placement") to OMERS, the pension plan for Ontario's municipal employees, of 12,910,000 Subscription Receipts at the Offering Price for aggregate gross proceeds of approximately $400 million.

The Public Offering was first announced on January 25, 2017 when AltaGas entered into an agreement with a syndicate of underwriters co-led by TD Securities Inc., RBC Capital Markets and J.P. Morgan Securities Canada Inc. TD Securities Inc., RBC Capital Markets and J.P. Morgan Securities Canada Inc. also acted as joint bookrunning agents on the Private Placement, which was also announced on January 25, 2017.

The net proceeds from the Public Offering and the Private Placement (together, the "Offerings") will be used to partially finance the previously announced $8.4 billion acquisition of WGL Holdings, Inc. ("WGL") (NYSE: WGL) (the "Acquisition"). WGL is the sole shareholder of Washington Gas Light Company, a regulated natural gas utility company headquartered in Washington, D.C. WGL also owns non-regulated power, midstream and energy marketing businesses in the United States, with a growing strategic footprint in the Marcellus/Utica gas formation.

Each Subscription Receipt will entitle the holder thereof to receive, without payment of additional consideration or further action, upon closing of the Acquisition, one common share ("Common Share") of AltaGas.

In addition, while the Subscription Receipts remain outstanding, holders will be entitled to receive cash payments ("Dividend Equivalent Payments") per Subscription Receipt that are equal to dividends declared by AltaGas on each Common Share. Such Dividend Equivalent Payments will have the same record date as the related Common Share dividend and will be paid to holders of Subscription Receipts concurrently with the payment date of each such dividend. Dividend Equivalent Payments will be paid first out of any interest on the Escrowed Funds (defined below) and then out of the Escrowed Funds.