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CALGARY, Alberta – June 16, 2009 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that it has entered into an agreement with a syndicate of underwriters, led by RBC Capital Markets, BMO Capital Markets, and TD Securities Inc. under which they have agreed to purchase from TransCanada and sell to the public 50,800,000 Common Shares.
The purchase price of $31.50 per Common Share will result in gross proceeds of approximately $1.6 billion. The offering is expected to close on or about June 24, 2009. TransCanada has also granted the underwriters an option to purchase up to an additional 7,620,000 Common Shares at a price of $31.50 per Common Share at any time up to 30 days after closing of the offering. Purchasers under the offering will be entitled to receive a quarterly dividend of $0.38 per common share for the quarter ending June 30, 2009. The dividend is payable on July 31, 2009.
The net proceeds of the offering will be used by TransCanada to partially fund capital projects of the Corporation, including the acquisition of an additional interest in the Keystone Pipeline System, for general corporate purposes and to repay short-term indebtedness.
The common shares will be offered to the public in Canada and the United States through the underwriters or their affiliates and will be issued by way of a prospectus supplement that will be filed with securities regulatory authorities in Canada and the United States under TransCanada’s short form base shelf prospectus which was previously filed with securities regulatory authorities across Canada and in the United States under the multi-jurisdictional disclosure system.
This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
A written prospectus relating to the offering may be obtained from RBC Capital Markets in Canada, Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066); or in the U.S. from RBC Capital Markets Corporation, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, NY 10281-8098 (fax: 212-428-6260).
With more than 50 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 370 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
Note: All financial figures are in Canadian dollars unless noted otherwise.
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For further information, please contact:
Media Inquiries:
Cecily Dobson / Terry Cunha
(403) 920-7859
(800) 608-7859
Investor & Analyst Inquiries:
David Moneta / Myles Dougan / Terry Hook
(403) 920-7911
(800) 361-6522
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