Toronto Hydro Corporation files final short form prospectus

/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./

TORONTO, March 25 /CNW/ - Toronto Hydro Corporation announced today that it has filed a final short form prospectus with each of the provincial securities regulatory authorities in Canada to qualify an offering by the City of Toronto of approximately $490.1 million of debentures of Toronto Hydro Corporation.

The City of Toronto has determined to monetize its interest in an amended and restated promissory note dated May 1, 2006 ("City Note") under which Toronto Hydro Corporation currently has approximately $490.1 million of indebtedness outstanding to the City of Toronto. Concurrent with the closing of the offering, the City Note will be converted, in accordance with its terms, into debentures of Toronto Hydro Corporation which will be offered for sale by a syndicate of underwriters led by RBC Dominion Securities Inc., CIBC World Markets Inc. and Scotia Capital Inc. and issued by Toronto Hydro Corporation under the terms of an existing trust indenture as supplemented to effect the offering.

The debentures will be direct unsecured obligations of Toronto Hydro Corporation, will be issued in two series with maturity dates of December 30, 2011 and May 6, 2013, will bear interest at a fixed annual rate of 6.11% payable semi-annually and will rank equally with all other unsecured and unsubordinated indebtedness of Toronto Hydro Corporation. Additional details of the offering are set out in the final prospectus which will be available on the SEDAR website for Toronto Hydro Corporation at www.sedar.com.

Toronto Hydro Corporation will not receive any proceeds from the offering.

The debentures have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or applicable exemption from the registration requirements of such Act. This press release does not constitute an offer to sell or a solicitation to buy the debentures in the United States.

About Toronto Hydro

The Corporation is a holding company which through its principal subsidiaries:

    
    -   Toronto Hydro-Electric System Limited ("LDC") - distributes
        electricity and engages in Conservation and Demand Management
        activities; and

    -   Toronto Hydro Energy Services Inc. ("TH Energy") - provides street
        lighting services.
    

The principal business of the Corporation is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system that delivers electricity to approximately 690,000 customers located in the City of Toronto.

SOURCE Toronto Hydro Corporation

For further information: For further information: Blair Peberdy, Vice-President, Marketing, Communications and Public Affairs: (416) 542-2515, bpeberdy@torontohydro.com; Pankaj Sardana, Vice-President, Treasurer and Regulatory Affairs: (416) 542-2707, psardana@torontohydro.com


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