Hydro One Limited announces closing of secondary offering of common shares by the Province of Ontario

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, April 14, 2016 /CNW/ - Hydro One Limited ("Hydro One" or the "Company") (TSX:H) today announced the closing of the secondary offering of 72,434,800 common shares ("Common Shares") of the Company (the "Offering") by the Province of Ontario (the "Province") at a price of $23.65 per Common Share for total gross proceeds to the Province of approximately $1.71 billion. The Company will not receive any of the proceeds from the Offering.

Following completion of the Offering, the Province continues to directly own 427,668,860 Common Shares, representing approximately 71.9% of Hydro One's total issued and outstanding Common Shares.

The Offering was made through a syndicate of underwriters led by RBC Capital Markets and Scotiabank. The Province has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 10,865,200 Common Shares at the Offering price. If the over-allotment option is exercised in full, the Province will directly own approximately 70.1% of the total issued and outstanding Common Shares.

The ownership numbers of the Province presented in this press release exclude 9,000,000 Common Shares which the Company understands are to be acquired in the Offering by Ontario Power Generation Inc., an entity that is wholly-owned by the Province, in connection with obligations Ontario Power Generation Inc. has to deliver Common Shares to certain of its unionized employees.     

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, any U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless pursuant to an exemption from those registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities of Hydro One in the United States or any other jurisdiction.

Forward-Looking Information

This press release may contain "forward-looking information" within the meaning of applicable securities laws. Words such as "expect," "anticipate," "intend," "attempt," "may," "plan," "will," "can," "believe," "seek," "estimate," and variations of such words and similar expressions are intended to identify such forward-looking information. 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's filings with the securities regulatory authorities in Canada, which are available on SEDAR at www.sedar.com. Hydro One does not intend, and it disclaims any obligation, to update any forward-looking information, except as required by law.

About Hydro One Limited

Hydro One Limited is Ontario's largest electricity transmission and distribution company headquartered in Toronto, Ontario with approximately $24.3 billion in assets and 2015 revenues of over $6.5 billion. The company delivers electricity safely and reliably to over 1.3 million customers across the province of Ontario, and to large industrial customers and municipal utilities. Hydro One owns and operates Ontario's approximately 29,000 circuit km high-voltage transmission network and an approximately 123,000 circuit km primary low-voltage distribution network. Hydro One Limited common shares are listed on the Toronto Stock Exchange (TSX: H).

SOURCE Hydro One Limited

For further information, please contact: Investor Relations: Bruce M. Mann, [email protected], 416-345-5722; Media Inquiries: Daffyd Roderick, [email protected], 416-345-6868