TransCanada Closes $1.6 Billion Common Share Offering
CALGARY, Alberta – June 24, 2009 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that it has completed its public offering of common shares. The offering was announced on June 16, 2009 when TransCanada entered into an agreement with a syndicate of underwriters, led by RBC Capital Markets, BMO Capital Markets and TD Securities Inc. under which they agreed to purchase from TransCanada and sell to the public 50,800,000 common shares.
The purchase price of $31.50 per common share resulted in gross proceeds of approximately $1.6 billion. 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.
TransCanada has 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 the closing of the offering.
The common shares were issued by way of a prospectus supplement that was filed with securities regulatory authorities in Canada and the U.S. 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.
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. 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
(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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