Exhibit 99.1
Hydro One Inc. Prices Offering of $750 Million Medium Term Notes under Sustainable Financing Framework
TORONTO, December 9, 2024 - Hydro One Limited, Ontario’s largest electricity transmission and distribution company, today announced that its wholly-owned subsidiary, Hydro One Inc. (together with Hydro One Limited, “Hydro One”), has priced an offering of $750 million of Medium Term Notes (the “Notes”) consisting of an additional offering of $375 million aggregate principal amount of 4.46% Medium Term Notes, Series 55, due 2053 (the “Series 55 Notes”) and an additional offering of $375 million aggregate principal amount of 4.25% Medium Term Notes, Series 60, due 2035 (the “Series 60 Notes”). The additional Series 55 Notes will be issued at a price of $101.560 per $100.00 principal amount plus accrued interest, for a re-opening yield of 4.362%, and the additional Series 60 Notes will be issued at a price of $102.522 per $100.00 principal amount plus accrued interest, for a re-opening yield of 3.938%.
The net proceeds from the issuance of the additional Notes (excluding any accrued interest paid to Hydro One Inc. in connection with the re-opening of the Notes) will be approximately $762 million. The offering of the Notes is expected to close on December 11, 2024. Upon completion of the offering of the Notes, there will be $675 million aggregate principal amount of Series 55 Notes outstanding and $1.075 billion aggregate principal amount of Series 60 Notes outstanding.
The offering of Notes represents the issuance of medium term notes pursuant to Hydro One’s Sustainable Financing Framework dated August 13, 2024 (the “2024 Framework”). Hydro One Inc. intends to allocate an amount equal to the net proceeds from the sale of the Series 55 Notes to finance and/or refinance, in whole or in part, new and/or existing eligible green and social projects that meet the eligibility criteria described in the 2024 Framework and an amount equal to the net proceeds from the sale of the Series 60 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 2024 Framework. Prior to such allocation, the net proceeds from the issuance of Notes 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 Inc. intends to allocate an amount equal to the net proceeds from the sale of the Series 55 Notes to eligible green and social projects under the 2024 Framework and an amount equal to the net proceeds from the sale of the Series 60 Notes to eligible green projects under the 2024 Framework, as the case may be, it will not be an event of default under the trust indenture governing the Notes if the company fails to do so.
The Notes are being offered on a best efforts 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 Inc. dated February 28, 2024. Hydro One Inc. will be filing pricing supplements to the base shelf prospectus relating to the offering of each series of Notes with the securities regulatory authorities in each of the provinces of Canada. The pricing supplements and accompanying base shelf prospectus contain important detailed information about each series of Notes being offered. Copies of the pricing supplements relating to each series of Notes and the accompanying base shelf prospectus relating to each series of Notes may be obtained over the Internet under Hydro One Inc.’s profile at the Canadian Securities Administrators’ website at www.sedarplus.com. Investors should read the pricing supplements and accompanying base shelf prospectus before making an investment decision.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The Notes have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the pricing supplements.
This news release is not an offer for sale within the United States of any debt or other securities of Hydro One Limited or Hydro One Inc. Securities of Hydro One Limited or Hydro One Inc., including any offering of its debt securities, 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 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 Notes 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 applicable U.S. securities laws.
