TransCanada Corporation has announced:
that 1,285,739 of its 14,000,000 fixed rate Cumulative Redeemable First Preferred Shares, Series 5 (Series 5 Shares) were tendered for conversion today, on a one-for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series 6 (Series 6 Shares). As a result of the conversion, TransCanada has 12,714,261 Series 5 Shares and 1,285,739 Series 6 Shares issued and outstanding. The Series 5 Shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbol TRP.PR.C. The Series 6 Shares will begin trading on the TSX today under the symbol TRP.PR.I.
The Series 5 Shares will continue to pay on a quarterly basis, for the five-year period beginning on January 30, 2016, as and when declared by the Board of Directors of TransCanada, a fixed dividend at an annualized rate of 2.263 per cent.
The Series 6 Shares will pay a floating rate quarterly dividend for the five-year period beginning on February 1, 2016, as and when declared by the Board of Directors of TransCanada. The dividend rate for the Series 6 Shares for the first quarterly floating rate period commencing February 1, 2016 to, but excluding April 30, 2016, is 2.037 per cent and will be reset every quarter.
For more information on the terms of, and risks associated with an investment in, the Series 5 Shares and the Series 6 Shares, please see the Corporation’s prospectus supplement dated June 17, 2010 which can be found under the Corporation’s profile on SEDAR at www.sedar.com.
TRP.PR.I is a FloatingReset, Bills+154bp, resulting from the 9% conversion from TRP.PR.C, which has reset at 2.263%. The issue will be tracked by HIMIPref™ and has been assigned to the FloatingReset subindex. The two issues constitute a Strong Pair.
The issue traded no shares today and closed at 9.00-17.50 (!), 5×50.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2046-02-01
Maturity Price : 9.00
Evaluated at bid price : 9.00
Bid-YTW : 5.57 %