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TORONTO, Nov. 9, 2017 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has agreed to issue $200 million principal amount of senior unsecured debentures ("Series 13") due February 28, 2048, that will bear interest at the rate of 3.485% per year, payable semi-annually in arrears. The Series 13 debentures will be issued at a price of 999.29 per $1,000 principal amount, and the offering is expected to close on or about November 14, 2017.
The Series 13 debentures are being sold on an agency basis under the Corporation's base shelf prospectus program 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 Corporation will file a pricing supplement to its previously filed base shelf prospectus dated May 8, 2017 with the securities regulators in each of the provinces of Canada. Details of the offering will be set out in the pricing supplement which will be available at www.sedar.com under the Corporation's profile.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction. The Series 13 debentures have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the base shelf prospectus or pricing supplement.
This news release is not an offer for sale within the United States of any debt or other securities of the Corporation. Securities of the Corporation may not be offered or sold in the United States absent registration under U.S. securities laws, or unless exempt from registration under such laws. The Canadian offering described in this news release is not being made in the United States and has not been, and will not be, registered under U.S. securities laws, and accordingly, the Series 13 debentures may not be offered or delivered, directly or indirectly, or sold in the United States except in certain transactions exempt from the registration requirements under U.S. securities laws.
- 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
- This issuance marks the lowest coupon rate for Toronto Hydro's long-dated debentures
"This issuance improves our debt maturity profile by increasing our weighted term to maturity and reducing our weighted fixed coupon, and helps fund much needed investment in our infrastructure to support the growth of our city."
- 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 the electricity distribution system for Canada's largest city. A leader in conservation and demand management, it has 765,000 customers located in the city of Toronto 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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