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TORONTO, Nov. 14, 2017 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has completed its public offering of $200 million principal amount of Series 13 senior unsecured debentures due February 28, 2048 that will bear interest at a rate of 3.485% per year payable semi-annually in arrears.
The Series 13 debentures were sold on an agency basis under the Corporation's base shelf prospectus dated May 8, 2017 through a syndicate co-led by RBC Dominion Securities Inc. and CIBC World Markets Inc. The syndicate also includes TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc. and Scotia Capital Inc. The net proceeds from the sale of the Series 13 debentures will be used to repay certain existing indebtedness of the Corporation and for general corporate purposes.
Norton Rose Fulbright Canada LLP acted as counsel for the Corporation and Blake, Cassels & Graydon LLP acted as counsel for the syndicate.
The Series 13 debentures have not been, and will not be, registered in the United States under the Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws, and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, any U.S. Persons (as defined in Regulation S under the US Securities Act) absent registration or unless pursuant to an applicable exemption from those registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy the Series 13 debentures in the United States or any other jurisdiction.
- The issue was well oversubscribed and saw participation from over 40 buyers
- The robust demand allowed Toronto Hydro to price the issue at the tight-end of its initial guidance
"We're very pleased with the outcome of this deal which saw strong participation from fixed income investors across Canada and allowed us to achieve one of the lowest long-dated coupons on record for a utility."
- Sean Bovingdon, Executive Vice-President and Chief Financial Officer, Toronto Hydro
ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly-owns two subsidiaries:
- Toronto Hydro-Electric System Limited (THESL) – which distributes electricity and engages in Conservation and Demand Management activities
- Toronto Hydro Energy Services Inc. (THESI) – which provides streetlighting services in the city of Toronto
The principal business of the Corporation and its subsidiaries is the distribution of electricity by THESL, which owns and operates an electricity distribution system, delivering electricity to approximately 765,000 customers located in the city of Toronto. A leader in conservation and demand management, it serves the largest city in Canada and distributes approximately 19% of the electricity consumed in Ontario.
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CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements that are based on certain assumptions and reflect the Corporation's current expectations. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of the material factors that could cause actual results to differ materially from current expectations are discussed in materials filed by the Corporation from time to time with the securities regulatory authorities. The Corporation does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Toronto Hydro Corporation
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