Toronto Hydro Corporation completes public offering of its Series 12 senior unsecured debentures in the principal amount of $200 million

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TORONTO, June 14, 2016 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has completed its public offering of $200 million principal amount of Series 12 senior unsecured debentures due August 25, 2026 that will bear interest at a rate of 2.52% per year payable semi-annually in arrears.

The Series 12 debentures were sold on an agency basis under the Corporation's base shelf prospectus dated January 9, 2015 through a syndicate co-led by BMO Nesbitt Burns Inc. and TD Securities Inc. The syndicate also included CIBC Capital Markets, RBC Dominion Securities Inc., National Bank Financial Inc. and Scotia Capital Inc. The net proceeds from the sale of the Series 12 debentures will be used to repay certain existing indebtedness of the Corporation and for general corporate purposes.

Norton Rose Fulbright Canada LLP acted as counsel for the Corporation and Blake, Cassels & Graydon LLP acted as counsel for the syndicate.

The Series 12 debentures have not been, and will not be, registered in the United States under the Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws, and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, any U.S. Persons (as defined in Regulation S under the US Securities Act) absent registration or unless pursuant to an applicable exemption from those registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy the Series 12 debentures in the United States or any other jurisdiction.

QUICK FACTS

• The issue was well oversubscribed and saw participation from over 50 investors
• The robust demand allowed Toronto Hydro to price the issue at the tight-end of its initial guidance

QUOTES

"This successful offering of our unsecured debentures is further proof that the Toronto Hydro story resonates well with our fixed income investors. We are extremely happy with the result of the offering, which will allow us to repay a portion of our short-term debt and help fund much-needed investment in our infrastructure."
-       Laura Foster, Interim, Chief Financial Officer, Toronto Hydro

ABOUT TORONTO HYDRO

The Corporation is a holding company which wholly-owns two subsidiaries:

• Toronto Hydro-Electric System Limited  - which distributes electricity and engages in Conservation and Demand Management activities
• Toronto Hydro Energy Services Inc. - which provides streetlighting services in the city of Toronto

The principal business of the Corporation and its subsidiaries is the distribution of electricity by Toronto Hydro-Electric System Limited, which owns and operates an electricity distribution system, delivering electricity to approximately 757,000 customers located in the city of Toronto. It is the largest municipal electricity distribution company in Canada and distributes approximately 18% of the electricity consumed in the province of Ontario.

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CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements that are based on certain assumptions and reflect the Corporation's current expectations. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of the material factors that could cause actual results to differ materially from current expectations are discussed in materials filed by the Corporation from time to time with the securities regulatory authorities. The Corporation does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Toronto Hydro Corporation

Image with caption: "Toronto Hydro Corporation (CNW Group/Toronto Hydro Corporation)". Image available at: http://photos.newswire.ca/images/download/20160614_C3465_PHOTO_EN_713699.jpg

Tori Gass, Communications and Public Relations, 416-903-4037, [email protected]; 24-hour media line: 416-903-6845, [email protected]