Yes, the offering was in lowly Canadian dollars, but TransCanada Corp.'s statement Monday that it had sold 30.5 million shares at C$33 apiece is pretty impressive. The sale to an underwriting syndicate led by RBC Capital markets, BMO Capital markets and TD Securities raised C$1 billion ($810 million). That figure could rise to C$1.16 billion if the underwriters exercise a 4.58 million share greenshoe option.
Why is there demand for
C$1 billion of new energy stock when oil prices have fallen by 60%? Because TransCanada is only indirectly affected by the price of oil.
It's well known that TransCanada is Canada's biggest pipeline operator, but the company is also the country's largest private power generator, with 10,900 megawatts of capacity in operation or under construction. Its steady income streams have buffeted the stock, which has fallen only 15% this year.
TransCanada issued C$1.1 billion of stock in May to help
pay for its $2.9 billion purchase of the Ravenswood power plant in New York and construction of the Keystone pipeline, which will stretch from Alberta to Oklahoma. The first phase of the pipeline has a price tag of C$5.2 billion.
- Peter Moreira
Something strange happened this week up in Canada: A company announced a 10-figure stock offering in the current climate.
