TransCanada 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 30,500,000 Common Shares.
The purchase price of $33.00 per Common Share will result 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.
The Common Shares will be offered to the public in Canada and the U.S. through the underwriters or their affiliates. TransCanada has also 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 closing of the offering.
The Common Shares will be issued by way of a prospectus supplement that will be filed with securities regulatory authorities in Canada and the U.S. under TransCanada's short form base shelf prospectus dated July 2, 2008, which was previously filed with securities regulatory authorities across Canada and in the U.S. under the multi-jurisdictional disclosure system.
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