TransCanada shores up liquidity for Keystone
Reuters
Published: Wednesday, November 26, 2008
Despite uncertain markets, Trans-Canada Corp. closed its second big stock offering of the year Tuesday and secured a $950-million credit facility as it moved to shore up its balance sheet to cover the cost of building the $5.2-billion Keystone pipeline.
The company, Canada's biggest pipeline firm, closed the previously announced sale of 30.5 million common shares to a group of underwriters for $33 each, raising gross proceeds of $1 billion, an mount that is earmarked for Keystone and to repay short-term debt.
It was the second big offering of the year for TransCanada. In May, the company raised $1.1 billion to pay for its purchase of the Ravenswood power plant in New York City.
The underwriters have an option to purchase a further 4.6 million shares at the same price within 30 days.
TransCanada also said some of its existing bankers have agreed to a new $950-million credit facility that will be used to support a commercial paper program needed pay for Keystone's costs.
The 3,345-kilometre Keystone line will carry up to 590,000 barrels a day of oil-sands crude from Alberta to refineries in the U. S. Midwest.
TransCanada shares were down seven cents at $32.15 on Tuesday on the Toronto Stock Exchange.
The stock has dropped 17 per cent over past 12 months, against a 37 per cent fall in the value of the exchange's benchmark index.
© The Calgary Herald 2008
