Historic Bond-Deal Failure Came From Modeling Error, Scotia Says

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.

Aspen Investments LP sold the bond last week, with the proceeds earmarked to buy an interest in TC Energy Corp.’s 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 saidTuesday, without providing details.

The collapse of the bond salemarks the first syndicated Canadian-dollar bond ...