MONTREAL, Nov. 11, 2011 /CNW Telbec/ - Gaz Métro inc. ("GMi") announced
today that it has entered into an agreement to sell to certain
institutional investors in the United States and Canada on a private
placement basis U.S.$260 million aggregate principal amount of 3.86%
senior secured notes due in 2022 and 5.06% senior secured notes due in
2042 (together, the "Notes"). The Notes will be secured by a guarantee
as to payment of principal and interest by Gaz Métro Limited
Partnership ("Gaz Métro"), together with collateral security backed by
the assets of GMi and Gaz Métro.
Proceeds from the private placement will be loaned by GMi to Gaz Métro
on substantially similar terms as to interest rate and maturity, and
will be used by Gaz Métro to partially fund its acquisition of Central
Vermont Public Service Corporation (NYSE-CV, "CVPS"). In the event that
the CVPS acquisition does not occur, proceeds will be used for general
corporate purposes. The acquisition of CVPS was approved by a very
strong majority of CVPS's common shareholders at a meeting held on
September 29, 2011. The acquisition is also subject to the approval of
U.S. federal and state regulators, and is expected to be completed
between May and July 2012. Therefore, the funding of the Notes is not
anticipated to occur until such time, through a delayed funding, but in
any event prior to October 1st, 2012.
"This private placement is another important step towards the
acquisition of CVPS by Gaz Métro. Moreover, it confirms the confidence
from investors towards Gaz Métro, particularly in the context of
turbulent financial markets", declared Pierre Despars, Executive Vice
President, Corporate Affairs and Chief Financial Officer of Gaz Métro.
The Notes have not been registered under the U.S. Securities Act of
1933, as amended (the "Securities Act") or any state securities laws
and may not be offered or sold in the United States absent registration
or an applicable exemption from registration under the Securities Act
and applicable state securities laws.
Overview of Valener, Gaz Métro and GMi
Valener owns an economic interest of approximately 29% in Gaz Métro.
Valener therefore has a stake in the energy industry and benefits from
Gaz Métro's diversified profile, both in terms of geography and
business segment. Valener also owns an indirect interest of 24.5% in
the wind power projects jointly developed by Beaupré Éole General
Partnership and Boralex Inc. on the private lands of Séminaire de
Québec. Valener may also pursue its own development projects and
acquisition strategies subject to a non-competition agreement in favour
of Gaz Métro and to applicable limitations under its credit facility.
Valener's common shares are listed on the Toronto Stock Exchange under
the "VNR" trading symbol. www.valener.com.
With over $3.5 billion in assets, Gaz Métro is Quebec's leading natural
gas distributor. Its 10,000-kilometer network serves 300
municipalities. Active in this regulated industry since 1957, Gaz Métro
is the trusted energy provider of customers in Quebec and Vermont who
choose natural gas for its competitive price, efficiency, comfort and
environmental benefits. Gaz Métro is also active in the electricity
distribution market and is involved in natural gas transportation and
storage, as well as the development of projects in areas such as wind
power generation, natural gas fuel for the transportation industry, and
biomethanation. Gaz Métro is committed to the satisfaction of its
customers, partners (Gaz Métro inc. and Valener Inc.), employees and
the communities in which it operates. www.gazmetro.com.
GMi mainly holds an economic interest of approximately 71% in Gaz Métro,
for which it acts as the General Partner and a financing vehicle.
Cautionary note regarding forward-looking statements
Certain statements contained in this press release may be
forward-looking pursuant to applicable securities laws. Such
forward-looking statements reflect the intentions, plans, expectations
and opinions of the management (the "Management") of GMi and are based
on information currently available to Management and assumptions about
future events. Forward-looking statements involve known and unknown
risks and uncertainties and other factors outside Valener or
Gaz Métro's control. A number of factors could cause actual results of
Valener and Gaz Métro to differ materially from the current
expectations as expressed in the forward-looking statements.
Although these forward-looking statements are based upon what Management
believes to be reasonable assumptions, Valener and Gaz Métro cannot
assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made
as of the date of this press release, and Valener and Gaz Métro assume
no obligation to update or revise them to reflect new events or
circumstances, except as required pursuant to applicable securities
laws. You are cautioned not to place undue reliance on these
forward-looking statements. The complete version of the cautionary note
regarding forward-looking statements as well as a description of the
relevant assumptions and risk factors likely to affect Valener's and
Gaz Métro's actual results are included in the Management's Discussion
and Analysis for the year ended September 30, 2010 of Valener and
Gaz Métro, and in Valener's disclosure filings. These documents are
available on SEDAR at www.sedar.com.
SOURCE GAZ METRO
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