07:57 AM EDT, 09/11/2024 (MT Newswires) -- A C$1 billion ($735 million) bond deal to finance an investment group's purchase of gas pipelines fell apart due to a financial-modeling mistake, according to analysts at Bank of Nova Scotia, Bloomberg is reporting.

It noted Aspen Investments LP sold the bond last week, with the proceeds earmarked to buy an interest in TC Energy Corp.'s ( TRP ) network of natural gas infrastructure in western Canada. But the bond sale failed to close and the minority-stake transaction is now delayed due to a "structuring issue," the pipeline company said Tuesday, without providing details.

The collapse of the bond sale marks the first syndicated Canadian-dollar bond deal to be canceled, according to Bloomberg records.

"The size and scope of the issue are unclear, though we understand there was an error in the financial model to do with future capital requirements" for the underlying assets, Scotiabank analysts Robert Hope and Jessica Hoyle wrote in a note. They said they still expect the sale will eventually get done, though perhaps not until next year.

The assets are TC Energy's ( TRP ) NGTL and Foothills pipelines, which span about 25,000 kilometers (15,530 miles) in Canada's western provinces. An Indigenous consortium is trying to buy a 5.3% stake in them, with the Alberta government backstopping the deal.

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