TransCanada Closes $1B Common Share Offering, $950MM Credit Facility

TransCanada 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.



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