Toronto Hydro Corporation to issue $200 million aggregate principal amount of senior unsecured debentures (Series 12)

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TORONTO, June 9, 2016 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has agreed to issue $200 million principal amount of senior unsecured debentures due August 25, 2026 ("Series 12") that will bear interest at the rate of 2.52% per year, payable semi-annually in arrears. The Series 12 debentures will be issued at a price of $999.84 per $1,000 principal amount, and the offering is expected to close on or about June 14, 2016.

The Series 12 debentures are being sold on an agency basis under the Corporation's base shelf prospectus program through a syndicate co-led by BMO Nesbitt Burns Inc. and TD Securities Inc. The syndicate also includes CIBC Capital Markets, RBC Dominion Securities Inc., National Bank Financial Inc. and Scotia Capital Inc.

The Corporation will file a pricing supplement to its previously filed base shelf prospectus dated January 9, 2015 with the securities regulators in each of the provinces of Canada. Details of the offering will be set out in the pricing supplement which will be available at www.sedar.com under the Corporation's profile.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction. The Series 12 debentures have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the base shelf prospectus or pricing supplement.

This news release is not an offer for sale within the United States of any debt or other securities of the Corporation. Securities of the Corporation 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 Canadian 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 Series 12 debentures 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 U.S. securities laws.

QUICK FACTS

• 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
• This issuance marks the lowest coupon rate for Toronto Hydro debentures

QUOTES

"This sale will complement our current debt-maturity schedule, while allowing 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 (THESL) - 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 THESL, 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/20160609_C5274_PHOTO_EN_710556.jpg

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