New Issue: TransCanada Trust sells $1.5 billion 5.3% 60-year trust notes at par

By Cristal Cody

Tupelo, Miss., Feb. 27 – TransCanada Trust priced $1.5 billion of series 2017-A 60-year trust fixed-to-floating rate notes (Baa2/BBB) on Monday at par with a coupon of 5.3% for the initial period ending March 15, 2027, according to an FWP filing with the Securities and Exchange Commission.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the lead managers.

The notes will reset to a floating rate from March 15, 2027 until March 15, 2047 at Libor plus 320.8 basis points and on March 15, 2047 through the March 15, 2077 maturity at Libor plus 395.8 bps.

The notes are guaranteed by parent company TransCanada Pipelines Ltd.

TransCanada Pipelines is a natural gas and oil pipeline and storage company based in Calgary, Alta.

Issuer:	TransCanada Trust
Guarantor:	TransCanada Pipelines Ltd.
Amount:	$1.5 billion
Description:	Trust notes
Maturity:	March 15, 2077
Bookrunners:	Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
Co-managers:	HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG, SMBC Nikko Securities America, Inc., Mizuho Securities USA Inc., Credit Agricole Securities (USA) Inc., Barclays, BofA Merrill Lynch and Wells Fargo Securities, LLC
Coupon:	5.3%; resets to floating rate March 15, 2027 until March 15, 2047 at Libor plus 320.8 bps and March 15, 2047 through final maturity at Libor plus 395.8 bps
Price:	Par
Yield:	5.3%
Call feature:	On or after March 15, 2027 at par
Trade date:	Feb. 27
Settlement date:	March 2
Ratings:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered

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