TORONTO, Jan. 9, 2024
/CNW/ - Hydro One Limited, Ontario's largest electricity transmission and
distribution company, today announced that its wholly-owned
subsidiary, Hydro One Inc. (together with Hydro One Limited,
"Hydro One"), has priced an offering of $800 million of
Medium Term Notes (the "Notes") consisting of $550 million aggregate principal amount of 4.39%
Medium Term Notes, Series 59, due 2034 (the "Series 59
Notes") and the additional offering of $250 million aggregate principal amount of its
3.93% Medium Term Notes, Series 53, due 2029 (the "Series 53
Notes"). The Series 59 Notes will be issued at a price of
$99.943 per $100.00 principal amount and the additional
Series 53 Notes will be issued at a price of $99.162 per $100.00
principal amount plus accrued interest.
The net proceeds from the issuance of the Notes (excluding any
accrued interest paid to Hydro One Inc. in connection with the
re-opening of the Series 53 Notes) will be approximately
$794.5 million. The offering of the
Notes is expected to close on January 12,
2024. Upon completion of the offering of the Notes (after
giving effect to the offering of additional Series 53 Notes), there
will be $550 million aggregate
principal amount of Series 53 Notes outstanding and $550 million aggregate principal amount of Series
59 Notes outstanding.
The offering of Notes represents the additional issuance of
medium term notes pursuant to Hydro One's Sustainable Financing
Framework (the "Framework") dated January 23, 2023. Hydro One Inc. intends to
allocate an amount equal to the net proceeds from the sale of the
Series 53 Notes to finance and/or refinance, in whole or in part,
new and/or existing eligible green and social projects that meet
the eligibility criteria described in the Framework and an amount
equal to the net proceeds from the sale of the Series 59 Notes to
finance and/or refinance, in whole or in part, new and/or existing
eligible green projects that meet the eligibility criteria
described in the Framework. Prior to such allocation, the net
proceeds may be initially used, in part or in full, for repayment
of indebtedness or investments in bank deposits or other cash
equivalents, in each case in accordance with Hydro One's internal
liquidity management policies. Although Hydro One Inc. intends to
allocate an amount equal to the net proceeds from the sale of the
Series 53 Notes to eligible green and social projects under the
Framework and an amount equal to the net proceeds from the sale of
the Series 59 Notes to eligible green projects under the Framework,
as the case may be, it will not be an event of default under the
trust indenture governing the applicable Notes if the company fails
to do so.
The Notes are being offered on a best efforts basis in each of
the provinces of Canada through a
syndicate of agents. The Notes are being offered pursuant to a
short form base shelf prospectus of Hydro One Inc. dated
June 3, 2022. Hydro One Inc. will be
filing pricing supplements to the base shelf prospectus relating to
the offering of each series of Notes with the securities regulatory
authorities in each of the provinces of Canada. The pricing supplements and
accompanying base shelf prospectus contain important detailed
information about each series of Notes being offered. Copies of the
pricing supplements relating to each series of Notes and the
accompanying base shelf prospectus relating to each series of Notes
may be obtained over the Internet under Hydro One Inc.'s profile at
the Canadian Securities Administrators' website at
www.sedarplus.com. Investors should read the pricing supplements
and accompanying base shelf prospectus before making an investment
decision.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities in any jurisdiction.
The Notes have not been approved or disapproved by any regulatory
authority nor has any such authority passed upon the accuracy or
adequacy of the short form base shelf prospectus or the pricing
supplements.
This news release is not an offer for sale within the United States of any debt or other
securities of Hydro One Limited or Hydro One Inc. Securities of
Hydro One Limited or Hydro One Inc., including any offering of its
debt securities, 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 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 Notes 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 applicable U.S. securities
laws.
Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly-owned subsidiaries, is
Ontario's largest electricity
transmission and distribution provider with approximately 1.5
million valued customers, approximately $31.5 billion in assets as at December 31, 2022, and annual revenues in 2022 of
approximately $7.8 billion. Our team
of approximately 9,300 skilled and dedicated employees proudly
build and maintain a safe and reliable electricity system which is
essential to supporting strong and successful communities. In 2022,
Hydro One invested approximately $2.1
billion in its transmission and distribution networks, and
supported the economy through buying approximately $1.9 billion of goods and services. We are
committed to the communities where we live and work through
community investment, sustainability and diversity initiatives. We
are designated as a Sustainable Electricity Leader™ by Electricity
Canada. Hydro One Limited's common shares are listed on the TSX and
certain of Hydro One Inc.'s medium term notes are listed on the
NYSE. Additional information can be accessed at www.HydroOne.com,
www.sedarplus.com or www.sec.gov.
Caution Concerning Forward Looking
Statements, Risks and Assumptions:
This news release includes "forward looking information" within
the meaning of applicable securities laws. The forward-looking
information in this news release includes, without limitation,
expectations regarding the timing of the closing of the offering
and the anticipated use of an amount equal to the net proceeds of
the offering of the Series 53 Notes towards financing and/or
refinancing new or existing eligible green and social projects
under the Framework and an amount equal to the net proceeds from
the offering of the Series 59 Notes towards financing and/or
refinancing new or existing eligible green projects under the
Framework. We caution that all forward looking information is
inherently subject to change and uncertainty and that actual
results may differ materially from those expressed or implied by
the forward looking information. A number of risks, uncertainties
and other factors could cause actual results and events to differ
materially from those expressed or implied in the forward looking
information or could cause our current objectives, strategies and
intentions to change, and many of these factors are beyond our
control and current expectation or knowledge. These statements are
not guarantees of future performance or actions and involve
assumptions and risks and uncertainties that are difficult to
predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking information. Some of the factors that could cause
actual results or outcomes to differ materially from the results
expressed, implied or forecasted by such forward-looking
information, including some of the assumptions used in making such
statements, are discussed more fully in Hydro One Limited's and
Hydro One Inc.'s filings with the securities regulatory authorities
in Canada, which are available on
SEDAR+ at www.sedarplus.com. Hydro One Limited and Hydro One Inc.
do not intend, and they disclaim any obligation, to update any
forward-looking information, except as required by law.
SOURCE Hydro One Limited