05:13 PM EDT, 08/28/2024 (MT Newswires) -- TC Energy Corporation ( TRP ) , trading near 52 week highs in both Canada and the United States, after trade Wednesday announced that South Bow Corporation has closed a notes offering of approximately $7.9 billion Canadian-dollar equivalent in aggregate principal amount related to the spinoff of TC Energy's ( TRP ) Liquids Pipelines business.

"Establishing the independent, investment-grade debt capital structure was met with strong market interest and is one of the final milestones required to consummate the spinoff Transaction, which remains on track to close early in the fourth quarter of 2024," the company said in a statement.

According to Wednesday's statement net proceeds of the notes offering were placed into escrow pending the completion of the spinoff transaction. Upon completion of the spinoff, the escrowed funds will be released to South Bow and used to repay indebtedness owed by South Bow and its subsidiaries to TC Energy ( TRP ) and its subsidiaries. Separately, South Bow established a C$2.0 billion four-year senior unsecured revolving credit facility in the third quarter of 2024, which will become available upon completion of the spinoff transaction. The facility will be used for committed capital expenditures and other general corporate purposes and will provide significant liquidity for South Bow.

TRP said the notes offering is comprised of:

- US$700 million in aggregate principal amount of 4.911% senior unsecured notes that will mature on Sept. 1, 2027 (the 2027 Notes); US$1,000 million in aggregate principal amount of 5.026% senior unsecured notes that will mature on Oct. 1, 2029 (the 2029 Notes); US$1,250 million in aggregate principal amount of 5.584% senior unsecured notes that will mature on Oct. 1, 2034 (the 2034 Notes); and US$700 million in aggregate principal amount of 6.176% senior unsecured notes that will mature on Oct. 1, 2054 (the 2054 Notes).

- C$450 million in aggregate principal amount of 4.323% senior unsecured notes that will mature on Feb. 1, 2030 (the 2030 Notes); C$500 million in aggregate principal amount of 4.616% senior unsecured notes that will mature on Feb. 1, 2032 (the 2032 Notes); and C$500 million in aggregate principal amount of 4.933% senior unsecured notes that will mature on Feb. 1, 2035 (the 2035 Notes).

- US$450 million in aggregate principal amount of 7.625% junior subordinated notes that will mature on March 1, 2055 (the Series 1 Notes) and US$650 million in aggregate principal amount of 7.5% junior subordinated notes that will mature on March 1, 2055.

TRP closed down $0.16 at $61.25 on the TSX, but remains shy of 52 week highs.