Toronto Hydro Corporation to sell $450 million aggregate principal amount of senior unsecured debentures (Series 8 and Series 9)

/THIS PRESS RELEASE MAY NOT BE PUBLISHED, DISTRIBUTED OR TRANSMITTED IN OR INTO THE UNITED STATES OR OVER UNITED STATES WIRE OR NEWS SERVICES./

TORONTO, April 4, 2013 /CNW/ - Toronto Hydro Corporation (the "Corporation") announced today that it has agreed to sell $250 million principal amount of 2.91% senior unsecured debentures due 2023 (Series 8) and $200 million principal amount of 3.96% senior unsecured debentures due 2063 (Series 9).  The Series 8 Debentures will bear interest at the rate of 2.91% per year and the Series 9 Debentures will bear interest at the rate of 3.96% per year.

The Series 8 Debentures and the Series 9 Debentures are being sold on an agency basis under the Corporation's MTN program through a syndicate led by RBC Dominion Securities Inc. and CIBC World Markets Inc.  The syndicate also includes TD Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc.

The net proceeds from the sale of the Series 8 Debentures and the Series 9 Debentures will be used to repay a portion of the Corporation's outstanding $470.1 million aggregate principal amount of Series 1 and Series 5 debentures which mature in May 2013 and for general corporate purposes.  The Corporation currently intends to repay the balance of the outstanding principal amount of Series 1 and Series 5 debentures from its available cash or borrowings under its existing credit facilities.

The Series 8 Debentures and the Series 9 Debentures have not been and will not be registered in the United States under the Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States or to U.S. Persons absent registration or applicable exemption from the registration requirement of such Act.  This news release does not constitute an offer to sell or a solicitation to buy the Series 8 Debentures and the Series 9 Debentures in the United States.

About Toronto Hydro Corporation

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

• Toronto Hydro-Electric System Limited ("LDC") - which distributes electricity and engages in Conservation and Demand Management activities; and
  
  
• Toronto Hydro Energy Services Inc. - which provides street lighting services.

The principal business of the Corporation and its subsidiaries is the distribution of electricity by LDC.  LDC owns and operates an electricity distribution system, which delivers electricity to approximately 719,000 customers located in the City of Toronto.

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

Blair Peberdy
Vice-President, Marketing, Communication and Public Affairs:
416-542-2515; [email protected]

JS Couillard
Chief Financial Officer
416-542-3166; [email protected]