TCPA offers a 6.91% current yield backed by regulated gas infrastructure, with modest upside toward par but meaningful duration and leverage risk.
Overview
TCPL is the operating natural-gas transmission subsidiary of TC Energy and the issuer of TCPA’s 6.250% junior subordinated notes due November 1, 2085. The notes have a USD 25.00 par value, pay quarterly and traded near USD 22.62 on August 17, 2026, implying a 6.91% current yield. **The core credit proposition is defensive cash flow:** approximately 95% of EBITDA comes from regulated assets or long-term contracts, while the network transports more than 30% of North American gas. TC Energy’s Q2 2026 revenue rose 5.7% year over year to CAD 3.96 billion, comparable EBITDA increased 12.3% to CAD 2.948 billion and comparable EPS reached CAD 0.94 versus CAD 0.8325 expected. Management expects 2026 EBITDA toward the upper end of CAD 11.6–11.8 billion and reiterated CAD 12.6–13.1 billion by 2028. **The key catalyst is deleveraging toward 4.75x debt-to-EBITDA**, potentially improving ratings and spreads. Risks are duration, 4.8x leverage, project execution and the notes’ junior status; the probability-weighted five-year value is USD 23.65.