TransCanada Announces Increased Preferred Share Issue

TransCanada Announces Increased Preferred Share Issue 
CALGARY, ALBERTA -- (Marketwire) -- 02/25/13 -- TransCanada
Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that
as a result of strong investor demand for its previously announced
offering of cumulative redeemable first preferred shares, series 7
(the "Series 7 Preferred Shares"), the size of the offering has been
increased to 24 million shares. The offering no longer includes the
previously granted underwriters' option. The aggregate gross proceeds
of the offering will now be $600 million. The syndicate of
underwriters is co-led by Scotiabank, BMO Capital Markets and RBC
Capital Markets. 
The anticipated closing date is March 4, 2013. The net proceeds of
the offering will be used for general corporate purposes and to
reduce short term indebtedness of TransCanada and its affiliates,
which short term indebtedness was used to fund TransCanada's capital
program and for general corporate purposes. 
The holders of Series 7 Preferred Shares will be entitled to receive
fixed cumulative dividends at an annual rate of $1.00 per share,
payable quarterly on the 30th day of January, April, July and
October, as and when declared by the board of directors of
TransCanada. The Series 7 Preferred Shares will yield 4.0 per cent
per annum for the initial fixed rate period ending April 30, 2019
with the first dividend payment date scheduled for April 30, 2013.
The dividend rate will reset on April 30, 2019 and every five years
thereafter at a rate equal to the sum of the then five-year
Government of Canada bond yield plus 2.38 per cent. The Series 7
Preferred Shares are redeemable by TransCanada, at its option, on
April 30, 2019 and on April 30 of every fifth year thereafter at a
price of $25.00 per share plus accrued and unpaid dividends. 
The holders of Series 7 Preferred Shares will have the right to
convert their shares into cumulative redeemable first preferred
shares, series 8 (the "Series 8 Preferred Shares"), subject to
certain conditions, on April 30, 2019 and on April 30 of every fifth
year thereafter. The holders of Series 8 Preferred Shares will be
entitled to receive quarterly floating rate cumulative dividends, as
and when declared by the board of directors of TransCanada, at an
annualized rate equal to the sum of the then 90-day Government of
Canada treasury bill rate plus 2.38 per cent. 
The Series 7 Preferred Shares will be offered to the public in Canada
pursuant to a prospectus supplement that will be filed with
securities regulatory authorities in Canada under TransCanada's short
form base shelf prospectus dated November 14, 2011. The securities
referred to herein have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements. 
This news release does not constitute an offer to sell or a
solicitation of any offer to buy, nor will there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction. 
ABOUT TRANSCANADA  
With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent's largest
providers of gas storage and related services with more than 400
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 11,800 megawatts
of power generation in Canada and the United States. TransCanada is
developing one of North America's largest oil delivery systems.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. For more information visit:
www.transcanada.com or check us out on Twitter @TransCanada or
http://blog.transcanada.com. 
FORWARD LOOKING INFORMATION  
This publication contains certain information that is forward-looking
and is subject to important risks and uncertainties (such statements
are usually accompanied by words such as "anticipate", "expect",
"would", "will" or other similar words). Forward-looking statements
in this document are intended to provide TransCanada security holders
and potential investors with information regarding TransCanada and
its subsidiaries, including management's assessment of TransCanada's
and its subsidiaries' future financial and operation plans and
outlook. All forward-looking statements reflect TransCanada's beliefs
and assumptions based on information available at the time the
statements were made. Readers are cautioned not to place undue
reliance on this forward-looking information. TransCanada undertakes
no obligation to update or revise any forward-looking information
except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to
TransCanada's Management's Discussion and Analysis filed February 13,
2013 under TransCanada's profile on SEDAR at http://www.sedar.com/
and other reports filed by TransCanada with Canadian securities
regulators and with the U.S. Securities and Exchange Commission. 
Contacts:
TransCanada
Media Enquiries:
Shawn Howard/Grady Semmens
403.920.7859 or 800.608.7859 
TransCanada
Investor & Analyst Enquiries:
David Moneta/Lee Evans
403.920.7911 or 800.361.6522
www.transcanada.com