TransCanada Closes $1.0 Billion Common Share Offering and New US$950 Million Committed Credit Facility
CALGARY, ALBERTA--(Marketwire - Nov. 25, 2008) - TransCanada Corporation (TSX:TRP)(NYSE:TRP) (TransCanada) today announced that it has completed its public offering of Common Shares. The offering was announced on November 17, 2008 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 30,500,000 common shares.
The purchase price of $33.00 per Common Share resulted in gross proceeds of approximately $1.0 billion. The net proceeds of the offering will be used by TransCanada to partially fund capital projects of the Corporation, including 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 4,575,000 Common Shares at a price of $33.00 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 dated July 2, 2008.
In addition, TransCanada announced that it has closed a new US$950 million committed bank facility with certain of its existing relationship banks. The revolving, extendable, expandable facility has an initial term of 364 days with a one-year term out at the option of the borrower and will support a new commercial paper program dedicated to funding expenditures for the Keystone Pipeline System. Its utilization is subject to post-closing conditions which are expected to be met prior to year-end.
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.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Company's pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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