{"id":565,"date":"2007-02-07T02:33:59","date_gmt":"2007-02-07T06:33:59","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=565"},"modified":"2007-02-07T02:33:59","modified_gmt":"2007-02-07T06:33:59","slug":"tcaprx-tcapry-credit-worries-over","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=565","title":{"rendered":"TCA.PR.X \/ TCA.PR.Y : Credit Worries Over?"},"content":{"rendered":"<p>TransCanada Corporation <a href=\"http:\/\/www.transcanada.com\/news\/2007_news\/20070206.html\">today announced<\/a> that:<\/p>\n<blockquote><p>it has entered into an agreement with a syndicate of underwriters, led by BMO Capital Markets, RBC Capital Markets, and TD Securities Inc. under which they have agreed to purchase from TransCanada and sell to the public 39,470,000 Subscription Receipts.The purchase price of $38.00 per Subscription Receipt will result in gross proceeds of approximately $1.5 billion. The net proceeds of the offering will be used by TransCanada towards financing the proposed acquisition of the American Natural Resources Company and ANR Storage Company (collectively, ANR). TransCanada announced the acquisition of ANR together with the acquisition of an additional interest in Great Lakes Gas Transmission Limited Partnership for a total of approximately US$3.4 billion, including US$457 million of assumed debt, on December 22, 2006.<\/p>\n<p>TransCanada has also granted the Underwriters an option to purchase up to an additional 5,920,500 Subscription Receipts at a price of $38.00 per Subscription Receipt at any time up to 30 days after closing of the offering.<\/p>\n<p>On closing of the ANR acquisition, the Subscription Receipts will automatically be exchanged on a one-to-one basis for common shares of TransCanada without any further action on the part of the holder and without payment of additional consideration.<\/p><\/blockquote>\n<p>Readers will recall that <a href=\"http:\/\/www.dbrs.com\">DBRS<\/a> placed\u00a0these issues <a href=\"http:\/\/www.prefblog.com\/?p=427\">Under Review with Developing Implications<\/a> in December:<\/p>\n<blockquote><p>DBRS estimates that, on a pro forma consolidated basis, the Company\u2019s debt-to-capital ratio (62% on a DBRS-adjusted basis as at September 30, 2006) would rise to 69% on a 100% debt-financed basis.<\/p><\/blockquote>\n<p>However, given new common equity worth $1.5-billion against a total price on the\u00a0acquisition of about CAD $4-billion, it would appear that the debt-to-capital ratio will be materially\u00a0unchanged &#8230; but note that I have not done a credit analysis or read any fine print!<\/p>\n<p>I&#8217;ll update this post when we see what DBRS has to say.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TransCanada Corporation today announced that: it has entered into an agreement with a syndicate of underwriters, led by BMO Capital Markets, RBC Capital Markets, and TD Securities Inc. under which they have agreed to purchase &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-565","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=565"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/565\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}