Toronto Hydro completes public offering of Series 12 debentures

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 Toronto Hydro Corporation (the “Corporation”) announced today that it has completed its public offering of $200 million principal amount of Series 12 senior unsecured debentures due August 25, 2026 that will bear interest at a rate of 2.52% per year payable semi-annually in arrears.

The Series 12 debentures were sold on an agency basis under the Corporation’s base shelf prospectus datedJanuary 9, 2015 through a syndicate co-led by BMO Nesbitt Burns Inc. and TD Securities Inc. The syndicate also included CIBC Capital Markets, RBC Dominion Securities Inc., National Bank Financial Inc. and Scotia Capital Inc. The net proceeds from the sale of the Series 12 debentures will be used to repay certain existing indebtedness of the Corporation and for general corporate purposes.

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Norton Rose Fulbright Canada LLP acted as counsel for the Corporation and Blake, Cassels & Graydon LLP acted as counsel for the syndicate.

The Series 12 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 12 debentures in the United States or any other jurisdiction.

  • The issue was well oversubscribed and saw participation from over 50 investors
  • The robust demand allowed Toronto Hydro to price the issue at the tight-end of its initial guidance
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Laura Foster, Interim, Chief Financial Officer, Toronto Hydro, said: “This successful offering of our unsecured debentures is further proof that the Toronto Hydro story resonates well with our fixed income investors. We are extremely happy with the result of the offering, which will allow us to repay a portion of our short-term debt and help fund much-needed investment in our infrastructure.” – CNW

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