Document:

Exhibit 4.3

 

EXECUTION VERSION

 

TCPL SUBORDINATED NOTE PURCHASE AGREEMENT

 

May 20, 2015

 

	
TO:
    	
TransCanada   Trust
    
	
 
    	
c/o   TransCanada PipeLines   Limited, as Administrative Agent
    
	
 
    	
450 - 1st Street S.W.
    
	
 
    	
Calgary, Alberta,
    
	
 
    	
T2P 5H1 Canada
    

 

Purchase of TCPL Subordinated Notes

 

The purpose of this letter agreement (the “Agreement”) is to confirm the terms under which TransCanada Trust (the “Trust”) has agreed to purchase and TransCanada PipeLines Limited (“TCPL”) has agreed to issue and sell to the Trust, junior subordinated notes in the principal amount of $750,000,000 (the “TCPL Sub Notes”) in United States Dollars.  The TCPL Sub Notes are issued under a trust indenture dated as of May 20, 2015, as supplemented by a supplemental indenture dated as of May 20, 2015, in each case between TCPL and Computershare Trust Company of Canada (as so supplemented, the “Indenture”) and have the rights and entitlements described therein.

 

Agreement to Purchase

 

1.                                      TCPL hereby agrees to issue and deliver, or cause to be delivered, to the Trust, and the Trust hereby agrees to purchase, the TCPL Sub Notes in the manner and for the consideration described in this Agreement.

 

Subscription Price

 

2.                                      The subscription price for the TCPL Sub Notes will be $750,000,000 (the “Subscription Price”) in United States Dollars.  The Subscription Price will be paid by the Trust to TCPL in accordance with Section 7 of this Agreement.

 

Representations and Warranties

 

3.                                      The Trust represents and warrants to TCPL that it is purchasing the TCPL Sub Notes as principal and is an “accredited investor” as defined in National Instrument 45-106 of the Canadian Securities Administrators.

 

4.                                      TCPL represents and warrants that the TCPL Sub Notes have been duly authorized and executed by TCPL and, when authenticated and delivered to the Trust in accordance with the terms hereof and the terms of the Indenture, will constitute valid and binding obligations of TCPL entitled to the benefits  of the Indenture and enforceable against TCPL in accordance with their terms except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of the rights of creditors generally or by general equitable principles (regardless of whether enforcement is considered in a proceeding at law or in equity).

 

 

Covenants

 

5.                                      The Trust will execute and deliver within the applicable time periods all documentation as may be required by applicable securities laws, if any, to permit the purchase of the TCPL Sub Notes on the terms set forth herein and the Trust will execute, deliver, file and otherwise assist TCPL in filing such reports, undertakings and other documents, if any, with respect to the issue of the TCPL Sub Notes as may be required by applicable securities laws or by any securities regulatory authority or stock exchange or other regulatory authority.

 

6.                                      The Trust understands that (i) the TCPL Sub Notes are subject to transfer restrictions, and (ii) it will not be able to resell the TCPL Sub Notes until expiry of the applicable hold period under applicable Canadian securities laws except in accordance with limited exemptions and compliance with other requirements of applicable law, and the Trust (and not TCPL) is responsible for compliance with applicable resale restrictions or hold periods and will comply with such transfer restrictions and all relevant securities laws in connection with any resale of the TCPL Sub Notes.

 

Delivery and Payment

 

7.                                      The issuance and purchase of the TCPL Sub Notes contemplated by this Agreement will take place at the offices of TCPL, 450- 1st Street S.W., Calgary, Alberta T2P 5C1 at 8:30 a.m. (Calgary time) on May 20, 2015 (the “Closing”).  At the Closing, TCPL will issue and deliver, or cause to be delivered, to the Trust one or more certificates for the TCPL Sub Notes, registered in the name of the Trust and the Trust will pay the Subscription Price to TCPL by cheque, bank draft or electronic transfer of funds or as otherwise agreed by the Trust and TCPL.

 

Personal Information Authorization

 

8.                                      By executing this Agreement, the Trust hereby consents to the collection, use and disclosure of the personal information provided herein and other personal information provided by the Trust or collected by TCPL or its agents as reasonably necessary in connection with the Trust’s subscription for the TCPL Sub Notes (collectively, “personal information”) including as follows: (a) TCPL may use personal information and disclose personal information to intermediaries such as TCPL’s legal counsel and withholding and/or transfer agents for the purposes of determining the Trust’s eligibility to invest in the TCPL Sub Notes and for managing and administering the Trust’s investment in the TCPL Sub Notes; (b) TCPL, its agents and advisors, may each collect, use and disclose personal information for the purposes of meeting legal, regulatory, self-regulatory, security and audit requirements (including any applicable tax, securities, money laundering or anti-terrorism legislation, rules or regulations) and as otherwise permitted or required by law, which disclosures may include disclosures to tax, securities or other regulatory or self-regulatory authorities in Canada and/or in foreign jurisdictions, if applicable, in connection with the regulatory oversight mandate of such authorities; (c) TCPL and its agents and advisors may use personal information and disclose personal information to parties connected with the proposed or actual transfer, sale, assignment, merger or amalgamation of TCPL or its business or assets or similar transactions, for the purpose of permitting such parties to evaluate and/or proceed with and complete such transaction.  Purchasers, assignees and successors of TCPL or its business or assets may collect, use and disclose personal information as described in this Agreement.  The Trust acknowledges that TCPL’s agents or intermediaries may be located outside of Canada, and personal information may be transferred and/or processed outside of Canada for the purposes described above, and that measures TCPL may use to protect personal information while handled by agents, intermediaries or other third parties on its behalf, and

 

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personal information otherwise disclosed or transferred outside of Canada for the purposes described above, are subject to legal requirements in foreign countries applicable to TCPL or such third parties, for example lawful requirements to disclose personal information to government authorities in those countries.

 

Governing Law

 

9.                                      This Agreement will be governed by and construed in accordance with the laws of Ontario and the federal laws of Canada applicable therein.

 

Entire Agreement

 

10.                               This Agreement contains the entire agreement of the parties relating to the purchase of the TCPL Sub Notes by the Trust and there are no representations, warranties, covenants or other agreements relating to the subject matter of this Agreement except as stated or referred to in this Agreement.

 

Time of the Essence

 

11.                               Time is of the essence of this Agreement.

 

Severability

 

12.                               Any provision of this Agreement which is found to be unenforceable by a court of competent jurisdiction will be ineffective to the extent of such unenforceability and will be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provisions.

 

Recourse to the Trustee and the Trust

 

13.                               Where any reference is made in this Agreement to an act to be performed by or for or on behalf of the Trust, or a right or obligation of the Trust, such reference will be construed and applied for all purposes as if it referred to an act to be performed by or a right or obligation of Valiant Trust Company  (the “Trustee”) for and on behalf of and in its capacity as trustee of the Trust.  This Agreement will be deemed and construed for all purposes as if made by the Trustee in and only in its capacity as trustee of the Trust. Subject to the exceptions set out in the Trust’s declaration of trust: (i) any liability, debt or obligation of the Trustee under this Agreement is non-recourse to the Trustee in its personal capacity and limited solely to the Trust Assets; (ii) no other property or assets of the Trustee, whether owned by it in its personal capacity or otherwise, will be subject to levy, execution or other enforcement procedure with regard to any obligation under this Agreement; and (iii) no recourse may be had or taken, directly or indirectly, against the Trustee in its personal capacity or against any incorporator, shareholder, director, officer, representative, employee, agent or advisor of the Trustee or any predecessor or successor of the Trustee.

 

Delivery of the TCPL Subordinated Note Purchase Agreement

 

14.                               TCPL and the Trust agree that two signed copies of this Agreement, together with any required forms, if any, necessary to comply with applicable securities legislation and policies, will be delivered to TCPL at Closing subject to extension through mutual agreement between TCPL and the Trust.

 

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Counterparts

 

15.                               This Agreement may be executed in counterparts, each of which shall be deemed to be an original and both of which taken together shall be deemed to constitute one and the same instrument. To evidence its execution of an original counterpart of this Agreement, a party may send a copy of its original signature on the execution page hereof to the other party by electronic transmission, and such transmission shall constitute delivery of an executed copy of this Agreement to the receiving party.

 

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TRANSCANADA TRUST, 
   by its Administrative Agent,
    TRANSCANADA PIPELINES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Joel E. Hunter”
    
	
 
    	
 
    	
Name: Joel E. Hunter 
    
	
 
    	
 
    	
Title: Vice-President, Finance
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Christine R. Johnston”
    
	
 
    	
 
    	
Name: Christine R. Johnston 
    
	
 
    	
 
    	
Title: Vice-President, Law and Corporate   Secretary
    

 

Confirmation and Acceptance

 

This TCPL Subordinated Note Purchase Agreement is confirmed and accepted by TCPL as of May 20, 2015.

 

	
 
    	
TRANSCANADA PIPELINES LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Joel E. Hunter”
    
	
 
    	
 
    	
Name: Joel E. Hunter 
    
	
 
    	
 
    	
Title: Vice-President, Finance
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Christine R. Johnston”
    
	
 
    	
 
    	
Name: Christine R. Johnston 
    
	
 
    	
 
    	
Title: Vice-President, Law and Corporate   Secretary
    

 

5Exhibit 4.4

 

EXECUTION VERSION

 

	
 
    	
May 19, 2015
    

 

TransCanada Trust

c/o TransCanada PipeLines Limited, as Administrative Agent

450 - 1st Street S.W.

Calgary, Alberta,

T2P 5H1 Canada

 

	
Facsimile:
    	
(403)   920-2467
    
	
 
    	
 
    
	
Attention:
    	
Vice-President and Treasurer
    

 

Dear Sirs:

 

TransCanada PipeLines Limited (“TCPL”) is pleased to advise that, subject to the terms and conditions contained in this Agreement, TCPL will provide the revolving credit facility (the “Loan”) described below to TransCanada Trust (the “Trust”), a trust established by Valiant Trust Company pursuant to the laws of the Province of Ontario.

 

Unless otherwise defined in this Agreement, capitalized terms have the meanings specified in the Declaration of Trust with respect to the Trust dated as of September 16, 2014 (as it may be amended, restated and supplemented from time to time, the “Declaration of Trust”).

 

1.                                      Description of Loan

 

(a)                                 Facility and Principal Amount: Revolving term credit facility up to $50,000,000.

 

(b)                                 Currency: United States Dollars.

 

(c)                                  Term of the Loan: 364 days, automatically renewed annually for a renewal term of 364 days unless terminated in accordance with this paragraph.  Amounts drawn may be repaid and reborrowed during the term of the facility.  If the facility is terminated as provided below, all amounts outstanding at the end of the term of the facility will be repaid in full at that time.  Either the Trust or TCPL may, by written notice to the other party not more than 90 days prior to the end of any then current 364 day term of the facility, notify such other party that it intends to terminate the facility as of the then current maturity date.

 

(d)                                 Purpose of the Loan: The Trust will use the Loan for general purposes, including facilitating the payment by the Trust of the expenses of the Trust in the normal course of the Trust’s activities, including expenses incurred in connection with the offering of the Trust Notes and interest payable thereon.

 

(e)                                  Availability of Loan: The Trust may avail itself of the Loan by way of one or more advances.  In order to obtain an advance, the Trust must notify TCPL, at its office referred to in Section 3(b)(ii), of the amount and date of the requested advance not later than 10:00 a.m. (Calgary time) two Business Days before the advance is to be made.

 

(f)                                   Payment of Interest: No interest will be payable on amounts borrowed under the Loan.

 

 

(g)                                  Repayment of Principal Amount: The principal amount owing under the Loan is repayable immediately on demand by TCPL.  The principal amount owing may be repaid by the Trust in whole or in part from time to time with two Business Days’ notice.  The principal amount must be repaid in full at the end of the term of the Loan.

 

(h)                                 Application of Payment: All payments made by the Trust under this Agreement will be applied directly against the principal amount outstanding under the Loan at such time.

 

(i)                                     Evidence of Indebtedness: In the absence of manifest error, TCPL’s records relating to the indebtedness of the Trust under this Agreement will constitute conclusive evidence of such indebtedness.

 

(j)                                    Negative Covenant: The Trust will not borrow, raise funds (including by way of issuance of bankers’ acceptances) or incur indebtedness on behalf of the Trust or grant any mortgage or hypothec, any security interest or any other charge on or interest in the Trust Assets to secure the payment of any debt or the performance of any other obligation, other than as provided for in this Agreement or in the Declaration of Trust.

 

(k)                                 Credit Agreement: This Agreement constitutes a Credit Agreement referred to in the Declaration of Trust.

 

2.                                      Expenses

 

All legal fees, disbursements and other expenses in connection with the preparation, execution, delivery, administration and enforcement of, and the protection of TCPL’s rights under, this Agreement (together with all sales, goods and services and other similar taxes payable in respect thereof, including interest, penalties and additions thereto) incurred by TCPL at any time are for the account of the Trust, and are payable by the Trust on demand.

 

3.                                      Notices

 

(a)                                 Any notice or communication required or permitted to be given, sent or delivered under this Agreement to either party must be in writing and will be sufficiently given, sent or delivered if it is:

 

(i)                                     delivered personally to such party;  or

 

(ii)                                  sent by facsimile transmission (with receipt confirmed).

 

(b)                                 Any notice or communication must be delivered or sent to the following addresses or facsimile numbers:

 

(i)                                     in the case of TransCanada Trust:

 

TransCanada Trust

c/o TransCanada PipeLines Limited, as Administrative Agent

450 - 1st Street S.W.

Calgary, Alberta,

T2P 5H1  Canada

 

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Attention:              Corporate Secretary

Facsimile:              (403) 920-2467

 

cc:                           Manager, International Treasury

Facsimile:              (403) 920-2358

 

(ii)                                  in the case of TransCanada PipeLines Limited:

 

TransCanada PipeLines Limited

450 - 1st Street S.W.

Calgary, Alberta,

T2P 5H1  Canada

 

Attention:              Corporate Secretary

Facsimile:              (403) 920-2467

 

cc:                           Manager, International Treasury

Facsimile:              (403) 920-2358

 

or to such other address or facsimile number as the party entitled to or receiving such notice or communication, by a notice given in accordance with this section 3, has communicated to the party giving or sending or delivering such notice or communication.

 

(c)                                  Any notice or communication given, sent or delivered as provided in paragraph (a) above:

 

(i)                                     if delivered personally, will be deemed to have been given, sent, delivered and received on the date of delivery;  and

 

(ii)                                  if sent by facsimile, will be deemed to have been given, sent, delivered and received on the date the sender receives the facsimile answer back confirming receipt by the recipient, so long as such day is a Business Day and such notice or communication was delivered during normal business hours of the recipient,

 

where “Business Day” means a day on which TCPL and the Trustee are open for business in the City of Calgary, Alberta, other than a Saturday, Sunday or a statutory or civic holiday in the City of Calgary, Alberta or New York, New York.

 

4.                                     Time

 

Time is of the essence of this Agreement.

 

5.                                      No Assignment

 

The Trust may not assign this Agreement, in whole or in part, without the prior written consent of TCPL.

 

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6.                                      No Waiver

 

No failure on the part of TCPL or the Trust to exercise and no delay in exercising any right under this Agreement will operate as a waiver of that right.

 

7.                                      Severability

 

Any provision of this Agreement which is found to be unenforceable by a court of competent jurisdiction will be ineffective to the extent of such unenforceability and will be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provisions.

 

8.                                      Limited Recourse

 

Where any reference is made in this Agreement to an act to be performed by or for or on behalf of the Trust, or a right or obligation of the Trust, such reference will be construed and applied for all purposes as if it referred to an act to be performed by or a right or obligation of the Trustee for and on behalf of and in its capacity as trustee of the Trust.  This Agreement will be deemed and construed for all purposes as if made by the Trustee in and only in its capacity as trustee of the Trust. Subject to the exceptions set out in the Declaration of Trust: (i) any liability, debt or obligation of the Trustee under this Agreement is non-recourse to the Trustee in its personal capacity and limited solely to the Trust Assets; (ii) no other property or assets of the Trustee, whether owned by it in its personal capacity or otherwise, will be subject to levy, execution or other enforcement procedure with regard to any obligation under this Agreement; and (iii) no recourse may be had or taken, directly or indirectly, against the Trustee in its personal capacity or against any incorporator, shareholder, director, officer, representative, employee, agent or advisor of the Trustee or any predecessor or successor of the Trustee.

 

9.                                      Governing Law

 

This Agreement will be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

10.                               Counterparts

 

This Agreement may be executed in any number of counterparts, each of which when so executed will be deemed to be an original, and such counterparts together will constitute one and the same instrument.

 

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If you are in agreement with the foregoing, please sign and return one copy of this Agreement, which thereupon will constitute our agreement with respect to its subject matter.

 

Yours truly,

 

	
 
    	
TRANSCANADA   PIPELINES LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Joel E. Hunter”
    
	
 
    	
 
    	
Name: Joel E. Hunter 
    
	
 
    	
 
    	
Title: Vice-President, Finance
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
(signed) “Christine R. Johnston”
    
	
 
    	
 
    	
Name: Christine R. Johnston 
    
	
 
    	
 
    	
Title: Vice-President, Law and Corporate   Secretary
    

 

Accepted and agreed to as of the date first above specified.

 

	
TRANSCANADA   TRUST, by 
    TRANSCANADA PIPELINES LIMITED, in its capacity as Administrative Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
(signed) “Joel E. Hunter”
    	
 
    	
 
    
	
 
    	
Name: Joel E. Hunter 
    	
 
    	
 
    
	
 
    	
Title: Vice-President, Finance
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
(signed) “Christine R. Johnston”
    	
 
    	
 
    
	
 
    	
Name: Christine R. Johnston 
    	
 
    	
 
    
	
 
    	
Title: Vice-President, Law and Corporate   Secretary
    	
 
    	
 
    

 

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