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Transcanada: Tcc News Release Dated November 6, 2015 Release

The following excerpt is from the company's SEC filing.

TransCanada Agrees to Sell a 49.9 percent Interest

in PNGTS to TC PipeLines, LP

Company Continues to Advance MLP Drop Down Strategy

– TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced it has entered into an agreement to sell a 49.9 percent interest in Portland Natural Gas Limited Partnership (PNGTS) to its master limited partnership, TC PipeLines, LP (NYSE: TCP), for a purchase price of US$223 million. The sale is expected to close at the end of 2015, upon satisfaction of closing conditions.

“The PNGTS transaction is a continuation of our strategy to drop down the remainder of TransCanada’s U.S. natural gas pipeline assets to the TC PipeLines partnership,” said Russ Girling, TransCanada’s president and chief executive officer. “Asset sales to the partnership provide TransCanada with cash proceeds to help fund our capital program and further diversify the partnership’s asset base, positioning it for continued growth.”

The US$223 million transaction is comprised of US$188 million in cash together with the assumption of a proportionate share of PNGTS debt in the amount of US$35 million. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) from this 49.9 percent interest in PNGTS is expected to be approximately US$23 million in 2016. The sales agreement also provides for additional payments from TC PipeLines, LP if PNGTS is expanded in the future.

PNGTS is a 474 kilometre (295 mile) high-capacity, high-pressure interstate natural gas pipeline which began serving New England's energy needs in March 1999. The pipeline connects with the TransQuébec and Maritimes...