/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWSWIRES/
MONTREAL, Oct. 14 /CNW Telbec/ - Gaz Métro inc. ("GMi") announced today
the closing of its previously announced offering of $150 million of 5.40%
Series L First Mortgage Bonds (the "Series L Bonds") guaranteed by Gaz Métro
Limited Partnership ("Gaz Métro").
The Series L Bonds, bearing interest at the rate of 5.40% per annum, will
mature on April 15, 2013. Standard & Poor's Rating Services and DBRS Limited
have each assigned an A rating to the Series L Bonds. The prospectus
supplement and the pricing supplement relating to this issue are available on
the SEDAR website at www.sedar.com under Gaz Métro inc.'s profile.
Proceeds from this issue are loaned to Gaz Métro on substantially similar
terms as to interest rate and maturity as those of the Series L Bonds. The
proceeds are added to Gaz Métro's general funds and will be used to reimburse
all outstanding 6.05% Series H First Mortgage Bonds of GMi of an aggregate
principal amount of $100,000,000 maturing on November 10, 2008 and a portion
of the borrowings under the revolving credit facility as well as for general
The Series L Bonds were offered on an agency basis by a syndicate of
dealers led by BMO Nesbitt Burns Inc., and including Desjardins Securities
Inc., National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets
Inc., RBC Dominion Securities Inc., TD Securities Inc., Laurentian Bank
Securities Inc. and Casgrain & Company Limited.
The Series L Bonds have not been and will not be registered under the
United States Securities Act of 1933, as amended, or any state securities
laws, and may not be offered, sold or delivered, directly or indirectly, in
the United States of America. This release does not constitute an offer to
sell or a solicitation to buy such securities in the United States.
Gaz Métro Overview
With more than $3.3 billion of assets and approximately 1,300 employees
in Quebec, Gaz Métro is a leading Quebec energy company and one of Canada's
largest natural gas distributors. Gaz Métro serves some 171,000 customers in
Quebec through an underground pipeline network of almost 10,000 km.
Through its wholly-owned subsidiary, Northern New England Energy
Corporation (NNEEC), Gaz Métro has been active in New England's energy
industry since 1986 and has about 300 employees there. NNEEC includes Vermont
Gas Systems, the sole natural gas distributor in Vermont, and Green Mountain
Power Corporation, the second largest electricity distributor in that State.
Through subsidiaries or in partnership with other investors, Gaz Métro is
active in natural gas transportation and storage as well as energy services
and water and waste water systems and fibre optic networks. Gaz Métro also
participates in various development projects in the energy sector.
For further information:
For further information: Investors and analysts: Caroline Warren,
Investor Relations, (514) 598-3324