TORONTO, Sept. 18,
2023 /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 $425 million aggregate principal amount of
Floating Rate Medium Term Notes, Series 56, due 2026 (the
"Notes"). The Notes bear interest at Daily Compounded CORRA
plus 0.50%, payable quarterly in arrears. The net proceeds
from the issuance of the Notes will be approximately $424 million. The offering of the Notes is
expected to close on September 21, 2023.
The offering of Notes represents Hydro One's second issuance of
medium term notes pursuant to its Sustainable Financing Framework
(the "Framework") dated January 23,
2023 and Hydro One's inaugural issuance of green bonds under
the Framework. The offering of Notes is also the first issuance of
green floating rate notes by a corporate issuer in Canada.
Hydro One Inc. intends to allocate an
amount equal to the net proceeds from the sale of the 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 Notes to
eligible green projects under the Framework,
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 a
pricing supplement to the base shelf prospectus relating to the
offering of the Notes with the securities regulatory
authorities in each of the provinces of Canada. The pricing supplement and
accompanying base shelf prospectus contain important detailed
information about the Notes being offered. A copy of the pricing
supplement and the accompanying base shelf prospectus relating to
the
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 supplement 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 supplement.
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 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