DBRS Rates TransCanada Corporation’s Preferred Share Issue at Pfd-2 (low), Stable Trend

DBRS Limited (DBRS) has today assigned a rating of Pfd-2 (low) with a Stable trend to TransCanada Corporation’s (TransCanada or the Company) $250 million cumulative redeemable first preferred shares, Series 11 (the Series 11 Preferred Shares), which have a dividend rate of 3.80% per annum, payable quarterly for the initial fixed-term period ending November 30, 2020. The dividend rate will reset on November 30, 2020, and on the last business day of November in every fifth year thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.96%. The Series 11 Preferred Shares are redeemable by TransCanada, at its option, on November 30, 2020, and on the last business day of November in every fifth year thereafter.

Holders of the Series 11 Preferred Shares will have the right, at their option, to convert their shares into cumulative redeemable first preferred shares, Series 12 (the Series 12 Preferred Shares), subject to certain conditions, on November 30, 2020, and on the last business day of November in every fifth year thereafter. Holders of the Series 12 Preferred Shares will be entitled to receive cumulative quarterly dividends at a rate equal to the sum of the then 90-day Government of Canada Treasury bill rate plus 2.96%.

The Series 11 Preferred Shares were issued under a prospectus supplement dated March 2, 2015, to the short-form base shelf prospectus dated December 2, 2013. The Series 11 Preferred Shares rank equally with all outstanding cumulative redeemable first preferred shares issued by the Company. Net proceeds from the offering will be used for general corporate purposes and to reduce short-term indebtedness of TransCanada and its affiliates.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Preferred Share and Hybrid Criteria for Corporate Issuers (January 2015) and Rating Companies in the Pipeline and Diversified Energy Industry (January 2015), which can be found on our website under Methodologies.