DBRS Assigns Rating of Pfd-2 (low) to TransCanada Corporation’s Preferred Share Issue
DBRS has today assigned a rating of Pfd-2 (low) with a Stable trend to the $350 million Cumulative Redeemable First Preferred Shares, Series 3 (First Preferreds) to be issued by TransCanada Corporation (TCC or the Company). The First Preferreds will yield 4.0% per annum for the initial five-year period ending June 30, 2015. The dividend rate will reset on June 30, 2015, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 1.28%. The First Preferreds are redeemable by TCC on June 30, 2015, and on June 30 of every fifth year thereafter. The First Preferreds are expected to settle on March 11, 2010.
The First Preferreds will rank equally with existing first preferred shares of the Company and the net proceeds from the offering will be used to partially fund capital projects, for other general corporate purposes and to repay short-term indebtedness of the Company and its affiliates.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The applicable methodology is Rating Utilities (Electric, Pipelines & Gas Distribution), which can be found on our website under Methodologies.
This is a Corporate (Energy) rating.
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