TORONTO, Dec. 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 $750 million of Medium Term Notes (the
"Notes") consisting of an additional offering of
$375 million aggregate principal
amount of 4.46% Medium Term Notes, Series 55, due 2053 (the
"Series 55 Notes") and an additional offering of
$375 million aggregate principal
amount of 4.25% Medium Term Notes, Series 60, due 2035 (the
"Series 60 Notes"). The additional Series 55 Notes
will be issued at a price of $101.560
per $100.00 principal amount plus
accrued interest, for a re-opening yield of 4.362%, and the
additional Series 60 Notes will be issued at a price of
$102.522 per $100.00 principal amount plus accrued interest,
for a re-opening yield of 3.938%.
The net proceeds from the issuance of the additional Notes
(excluding any accrued interest paid to Hydro One Inc. in
connection with the re-opening of the Notes) will be approximately
$762 million. The offering of the
Notes is expected to close on December 11,
2024. Upon completion of the offering of the Notes, there
will be $675 million aggregate
principal amount of Series 55 Notes outstanding and $1.075 billion aggregate principal amount of
Series 60 Notes outstanding.
The offering of Notes represents the issuance of medium term
notes pursuant to Hydro One's Sustainable Financing Framework dated
August 13, 2024 (the "2024
Framework"). Hydro One Inc. intends to allocate an amount equal
to the net proceeds from the sale of the Series 55 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 2024 Framework and an amount equal to the net
proceeds from the sale of the Series 60 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 2024
Framework. Prior to such allocation, the net proceeds from the
issuance of Notes 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 55 Notes to
eligible green and social projects under the 2024 Framework and an
amount equal to the net proceeds from the sale of the Series 60
Notes to eligible green projects under the 2024 Framework, as the
case may be,
it will not be an event of default under the trust
indenture governing the 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 February 28, 2024. 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 $32.8 billion in assets as at December 31, 2023, and annual revenues in 2023 of
approximately $7.8 billion. Our team
of approximately 9,700 skilled and dedicated employees proudly
build and maintain a safe and reliable electricity system which is
essential to supporting strong and successful communities. In 2023,
Hydro One invested approximately $2.5
billion in its transmission and distribution networks, and
supported the economy through buying approximately $2.5 billion of goods and services. We are
committed to the communities where we live and work through
community investment, sustainability and diversity initiatives.
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
Notes towards financing and/or refinancing new
or existing eligible projects under the 2024 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 expectations 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.
View original
content:https://www.prnewswire.com/news-releases/hydro-one-inc-prices-offering-of-750-million-medium-term-notes-under-sustainable-financing-framework-302326824.html
SOURCE Hydro One Limited