Toronto Hydro Raises USD157 Million in Public Offering of 3.485% Series 13 Debentures Due 2048

Published: Nov 09 2017
Deal Summary

Toronto Hydro Corporation, a power distribution company, has completed the public offering of 3.485% series 13 senior unsecured debentures due February 28, 2048, for gross proceeds of CAD200 million (USD156.92 million). The debentures were issued at CAD999.29 (USD784.04) per CAD1,000 (USD784.6) principal amount of debentures. The company received net proceeds of approximately CAD198.85 million (USD156.02 million).

Interest on the debentures will be paid semi-annually on February 28 and August 28 of each year, commencing from February 28, 2018. Payment of interest on February 28, 2018 will be in an amount equal to CAD10.1208219 (USD7.94) per CAD1,000 (USD784.6) principal amount (short first coupon) and interest payments will be in equal semi-annual amounts on each interest payment date thereafter.

From issuance to August 28, 2047, the debentures may be redeemed, at the company’s option, in whole at any time or in part from time to time, on not more than 60 and not less than 15 business days’ prior notice, at a price equal to the greater of the Canada yield price and par, together with accrued and unpaid interest to the date fixed for redemption. On or after August 28, 2047 (six months prior to the maturity date debentures), the debentures may be redeemed, at the company’s option, in whole at any time or in part from time to time, on not more than 60 and not less than 15 business days’ prior notice, at a price equal to 100% of the principal amount of the debentures outstanding, together with accrued and unpaid interest to the date fixed for redemption.

RBC Dominion Securities Inc., CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., and Scotia Capital Inc. acted as agents, while Norton Rose Fulbright Canada LLP acted as legal advisor to the company for the offering. In connection to the offering, the company will pay the agents 0.5% or CAD1 million (USD0.78 million) commission.

The company intends to use net proceeds to repay certain existing indebtedness and for general corporate purposes.

Deal History:

Announced: On November 9, 2017, Toronto Hydro agreed to issue 3.485% series 13 senior unsecured debentures due February 28, 2048, for gross proceeds of CAD200 million (USD156.92 million) in a public offering.

Filing: On May 8, 2017, Toronto Hydro filed short form base shelf prospectus for time to time public offering of unsecured debentures in one or more series in an aggregate principal amount of up to CAD1,000 million (USD784.6 million) during the 25 months from the date of issuance of the receipt for this prospectus.

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