TransCanada to Issue $1.6B of Common Shares
TransCanada Corporation 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.
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