TransCanada Completes Acquisition of Columbia Pipeline Group and Announces Exchange Date for Subscription Receipts

CALGARY, ALBERTA--(Marketwired - July 1, 2016) - News Release - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) (the Company) today announced the completion of the transaction to acquire all of the outstanding shares of Columbia Pipeline Group, Inc. (NYSE: CPGX) (Columbia) for an aggregate purchase price of approximately US$13 billion, including the assumption of approximately US$2.8 billion of debt. Trading in Columbia shares on the New York Stock Exchange (NYSE) will be suspended effective as of the opening of trading today. Columbia has directed NYSE to file today with the Securities and Exchange Commission a Form 25 on Columbia's behalf to commence the process of delisting shares of Columbia stock from the NYSE and terminating the registration of such shares under the Securities Exchange Act of 1934.

Information for Holders of Subscription Receipts

Effective July 4, 2016, being the first Canadian business day following the acquisition closing date, the subscription receipts issued on April 1, 2016, to fund a portion of the purchase price for Columbia will automatically be exchanged for TransCanada common shares in accordance with the terms of the subscription receipt agreement.

TransCanada expects that trading in the subscription receipts will be halted on the Toronto Stock Exchange (TSX) prior to market opening on Monday July 4, 2016, that the transfer register maintained by the subscription receipt agent will be closed and that the subscription receipts will be delisted by the TSX after close of trading on July 4, 2016. The common shares to be issued on the exchange of the subscription receipts are expected to begin trading on the TSX on July 4, 2016, and on the New York Stock Exchange on July 5, 2016.

Holders of subscription receipts as of June 30, 2016, will remain entitled to receive a dividend equivalent payment on July 29, 2016, of $0.565 per subscription receipt that they held on June 30, 2016.

TransCanada to Review Strategic Alternatives for its Master Limited Partnership Holdings

With the completion of the acquisition, TransCanada will focus its attention on integrating Columbia's business. TransCanada has retained a financial advisor to assist in a review of strategic alternatives for its master limited partnership (MLP) holdings, in order to identify the strategy that best positions TransCanada for the long term. The Company will carefully review its integrated business plan including future financial needs and expects to be in a position to communicate its determination regarding the future of TC PipeLines, LP and Columbia Pipeline Partners LP later in 2016. The Company does not anticipate any dropdowns to the MLPs until the review has been completed.