Public offering of pass-through certificates completed to finance TransCanada Pipelines head office tower in Calgary

On October 14, 1999 a $220 million public offering of pass-through certificates was completed to finance the construction of the new TransCanada Pipelines head office tower in Calgary, Alberta.

The pass-through certificates (undivided co-ownership interests in first mortgage bonds) were comprised of three classes: (1) a $50 million 7.116% series due September 5, 2009; (2) a $75 million 7.561% series due September 5, 2015; and (3) a $95 million 7.894% series due September 5, 2021. The transaction was structured and underwritten by Merrill Lynch Canada Inc. H&R Developments Corporation is the developer of this 38-storey office tower project and TransCanada Pipelines Limited has agreed to lease all of the office, storage and related space in the building once it is completed. The structure for this transaction is somewhat unique as a long term bond financing because of the construction financing element. Fraser Milner acted as counsel to H&R Developments Corporation and the FM team included Maggie Brady, Peter Murphy, Joseph Marin, Dennis Wiebe and Heidi Clark (Toronto) and Gene (Eugene) Durand, Rob McKinnon and Glenn Hardie (Calgary). Merrill Lynch Canada Inc. was represented by Goodman Phillips & Vineberg (Toronto) and the GPV team included Juli Morrow, Ira Berg, Andrew Wiseman, Allan Goodman, Susan Zimmerman, John Alton and Tom Macdonald and by Wayne Whitlock of Bennett Jones in Calgary.

TransCanada Pipelines was represented by Graham Bennett (VP Law, Energy Operations) and by Kieth Mullback of McCarthy Tetrault in Calgary. The law firms of McDonald & Hayden (Clifford Goldlist) and Minden, Gross, Grafstein & Greenstein both of Toronto acted as special counsel to H&R Developments in connection with some of the development and construction aspects of the transaction. The Minden Gross team included Stephen Posen, Debra Reiskind and Robert Beattie.