Williams, Williams Partners Updates on Sale of Canadian Assets
Williams and Williams Partners reported the completion of the sale of its Canadian businesses to Inter Pipeline.
According to a media release, the combined cash proceeds amounted to $1.38 billion CAD between the partnership and company.
In connection with the sale, Williams agreed to waive $150 million USD 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, the division of the combined sales price between the entities is ~$839 million USD for Williams Partners and ~$220 million USD for Williams. The partnership and the company plan to use the cash proceeds from the transactions to reduce borrowings on credit facilities.
Certain amounts are required to be withheld and deposited into escrow accounts in accordance with the sale agreements. At closing, $105 million CAD of Williams' proceeds were placed in escrow pending the receipt of certain credits being pursued by the Canadian businesses. In compliance with certain tax rules pertaining to a sale of Canadian assets by a foreign parent, 25 percent of the total proceeds, after the withholding described above, were deposited with an escrow agent pending receipt of Canadian Revenue Agency tax clearance which is expected in late 2016 or early 2017. The company and the partnership do not expect a taxable gain on the transactions.
"Completing this transaction represents further progress on the commitment we made in early 2016 to strengthen our balance sheet and position Williams for continued growth," said Alan Armstrong, Williams' president and chief executive officer. "This action enhances our ability to deliver on our natural gas focused-strategy and emphasis on our core business."
TD Securities acted as lead financial advisor and Barclays acted as a co-advisor to Williams on the transactions.
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THE DAILY VIEW
Papyrus Joins Forces with Designer Lela Rose
Papyrus is looking to bring the “elegance and style” of fashion to its greeting cards via a new designer collaboration series.
According to a release, the collaboration marks the first time a fashion design house and greeting card brand have joined forces to develop a custom greeting card collection.
Papyrus said it is partnering with American fashion designer Lela Rose to introduce the series. Rose will feature her "sophisticated yet modern style" in the debut card and gift collection, slated to launch during New York Fashion Week. The collection will be available in New York City Papyrus stores and select retailers in September, with availability expanding to all Papyrus locations and retailers in October.
"The fashion designer collaboration series is a celebration of the commitment Papyrus has to the arts, including a focus on the fashion industry, quality craftsmanship and trend-forward design," said Christy Kaprosy, President of Papyrus-Recycled Greetings. "We are delighted to have Lela Rose's elegant line lead the first Papyrus fashion designer collaboration program, and we are excited to bring more fashion designers to our loyal customers in the future."
The company noted the collection, which draws inspiration from some of Rose's recent runway designs, consists of 16 cards and five gift accessories, including gift bags, gift tissue, roll wrap and a gift tag set. It also will be available online at papyrusonline.com
"I'm thrilled to be the first designer to collaborate with Papyrus on their exclusive new fashion series," said Lela Rose. "This is a unique way to showcase our designs, silhouettes and prints, and extend the brand into a new category."
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