Hydro One prices notes of $1.1-billion offering

Executive Summary

• Hydro One Inc. priced an offering of $1.1 billion in medium-term notes under its sustainable financing framework.
• The offering consists of three series of notes with maturities ranging from 2032 to 2055 and interest rates between 3.94% and 4.95%.
• Net proceeds are intended to finance or refinance eligible green projects, with initial use potentially including debt repayment or cash equivalents.

Key Details

• Total Principal Amount: $1.1 billion.
• Series 61: $450 million aggregate principal amount, 3.94% interest rate, due 2032, issued at $99.988 per $100 principal amount.
• Series 62: $300 million aggregate principal amount, 4.30% interest rate, due 2035, issued at $99.928 per $100 principal amount.
• Series 63: $350 million aggregate principal amount, 4.95% interest rate, due 2055, issued at $99.907 per $100 principal amount.
• Net Proceeds: Approximately $1.1 billion.
• Closing Date: Expected to close on August 25, 2025.
• Framework: Issued pursuant to Hydro One's sustainable financing framework dated August 13, 2024.
• Use of Proceeds: Intended to finance/refinance new/existing eligible green projects. Prior to allocation, proceeds may be used for repayment of indebtedness or investments in bank deposits/cash equivalents per internal liquidity policies. Failure to allocate to green projects is not an event of default.
• Agents: Syndicate includes BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., Casgrain & Company Ltd., Laurentian Bank Securities Inc., and Cedar Leaf Capital Inc. (additional agent).
• Offering Basis: Best effort basis in each of the provinces of Canada.
• Regulatory Filing: Pursuant to short form base shelf prospectus dated February 28, 2024; pricing supplements to be filed with securities regulatory authorities.

Notable Quotes

• None provided in the text.