07:33:53 EDT Thu 28 Sep 2023
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Hydro One Ltd
Symbol H
Shares Issued 599,076,993
Close 2023-09-18 C$ 37.14
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Hydro One prices notes of $425-million offering

2023-09-18 20:43 ET - News Release

Mr. Omar Javed reports


Hydro One Ltd.'s wholly owned subsidiary, Hydro One Inc., has priced an offering of $425-million aggregate principal amount of floating-rate medium-term notes, Series 56, due 2026. The notes bear interest at the daily compounded Canadian overnight repo rate average plus 0.50 per cent, 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 Sept. 21, 2023.

The offering of notes represents Hydro One's second issuance of medium-term notes pursuant to its sustainable financing framework dated Jan. 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 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 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 effort 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 dated June 3, 2022. Hydro One 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's profile at the Canadian Securities Administrators' website at SEDAR+. Investors should read the pricing supplement and accompanying base shelf prospectus before making an investment decision.

About Hydro One Ltd.

Hydro One, 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 Dec. 31, 2022, and annual revenues in 2022 of approximately $7.8-billion. Its 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. It is committed to the communities where it lives and works through community investment, sustainability and diversity initiatives. It is designated as a sustainable electricity leader by Electricity Canada. Hydro One's common shares are listed on the Toronto Stock Exchange, and certain of Hydro One's medium-term notes are listed on the New York Stock Exchange.

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