TransCanada Provides Dividend Rate Notice For Series 5 and 6 Preferred Shares

CALGARY, ALBERTA--(Marketwired - Dec. 31, 2015) - TransCanada Corporation (TSX:TRP)(NYSE:TRP) (TransCanada) announced today that it has notified the registered shareholder of the applicable dividend rates for Cumulative Redeemable First Preferred Shares, Series 5 (Series 5 Shares) and the Cumulative Redeemable First Preferred Shares, Series 6 (Series 6 Shares). The rates were calculated today, in accordance with the process defined in the prospectus supplement dated June 17, 2010.

As previously announced in our news release dated December 15, 2015, holders of the Series 5 Shares have the right on January 30, 2016 to convert on a one-for-one basis, any or all of their Series 5 Shares into Series 6 Shares and receive a floating rate quarterly dividend, or retain any or all of their Series 5 Shares and receive a new fixed rate quarterly dividend.

Should a holder of Series 5 Shares choose to retain their shares, such shareholders will receive the new annual fixed dividend rate applicable to the Series 5 Shares of 2.263 per cent for the five-year period commencing January 30, 2016 to, but excluding, January 30, 2021.

Should a holder of Series 5 Shares choose to convert their shares to Series 6 Shares, given that the conversion date of January 30, 2016 is not a business day, the conversion will be effective on the next business day, February 1, 2016. As a result, such shareholders will retain their Series 5 Shares until February 1 and receive the new annual fixed dividend rate for such shares for two days, January 30 and 31. Holders of Series 6 Shares will receive the floating quarterly dividend rate applicable to the Series 6 Shares of 2.037 per cent for the quarterly floating rate period commencing effective February 1, 2016 to, but excluding, April 30, 2016. The floating quarterly dividend rate will be reset every quarter.

Beneficial owners of Series 5 Shares are reminded that those who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 5 p.m. (EDT) on January 15, 2016.

For more information on the terms of, and risks associated with an investment in the Series 5 Shares and the Series 6 Shares, please see the Corporation's prospectus supplement dated June 17, 2010 which is available on sedar.com or on the Corporation's website.

With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 68,000 kilometres (42,100 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 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,500 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest liquids delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.

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", "believe", "may", "will", "should", "estimate", "intend" 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 plans and financial outlook. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. 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 the Quarterly Report to Shareholders dated November 2, 2015 and 2014 Annual Report filed under TransCanada's profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.