South Bow (SOBO) Registration Filing summary

Company overview and business model

• Operates critical liquids pipelines and terminal assets across Canada and the U.S., transporting crude oil from the Western Canadian Sedimentary Basin and Cushing hub to the U.S. Midwest and Gulf Coast.

• Provides ancillary services such as storage at terminals and conducts non-regulated marketing activities.

• Became an independent, publicly traded entity following a spinoff from TC Energy, with shares listed on TSX and NYSE.

Financial performance and metrics

• For the twelve months ended December 31, 2024, earnings coverage ratio was 2.1x; for the twelve months ended March 31, 2025, it was 2.0x.

• Borrowing costs were approximately $389 million for 2024 and $381 million for the twelve months ended March 31, 2025.

• Profit before borrowing costs and income tax was $806 million for 2024 and $764 million for the twelve months ended March 31, 2025.

• As of March 31, 2025, total consolidated senior debt was $4.632 billion and junior subordinated debt was $1.087 billion.

Use of proceeds and capital allocation

• No proceeds will be raised from the exchange offer; all expenses related to the offer will be paid from general corporate funds.

• Net proceeds from the initial notes offering (excluding the 2034 Notes) and Guarantor Party Notes were used to repay indebtedness to TC Energy and its subsidiaries upon completion of the spinoff.