Gaz Métro announces closing of a private placement of $100 million Series R first mortgage bonds

March 31, 2015 - Press releases

Montréal, March 31, 2015 – Gaz Métro inc. (“GMi”) announced today that it has completed a private placement of $100 million of Series R First Mortgage Bonds (the “Series R Bonds”). The Series R Bonds are secured by a guarantee as to payment of principal and interest by Gaz Métro Limited Partnership (“Gaz Métro”), together with collateral security backed by the assets of GMi and Gaz Métro. The Series R Bonds, bearing interest at the rate of 3.30% per annum, will mature on March 31, 2045. The Series R Bonds have been assigned a rating of A+ by Standard & Poor's and a rating of A by DBRS Limited.

Proceeds from the private placement will be loaned by GMi to Gaz Métro on substantially similar terms as to interest rate and maturity, and will be used by Gaz Métro to repay existing indebtedness and for general corporate purposes. The Series R Bonds were offered on an agency basis through a syndicate of dealers led by BMO Nesbitt Burns Inc. and Desjardins Securities Inc., as joint bookrunners and co-lead private placement agents, together with National Bank Financial Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., Laurentian Bank Securities Inc. and Casgrain & Company Limited, as agents.

The Series R Bonds have not been and will not be qualified for distribution to the public under applicable Canadian Securities Laws and, accordingly, any offer or sale of the Series R Bonds in Canada is being made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws. The Series R Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered, sold or delivered in the United States of America or its territories or possessions or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Series R Bonds in the United States.

Overview of Gaz Métro and GMi

GMi mainly holds an economic interest of approximately 71% in Gaz Métro, for which it acts as the General Partner and a financing vehicle.

With more than $6 billion in assets, Gaz Métro is a leading energy provider. It is the largest natural gas distribution company in Québec, where its network of over 10,000 km of underground pipelines serves 300 municipalities and more than 195,000 customers. Gaz Métro is also present in Vermont, producing electricity and distributing electricity and natural gas to meet the needs of more than 305,000 customers. Gaz Métro is actively involved in the development and operation of innovative, promising energy projects such as the production of wind power, the use of natural gas as a transportation fuel and the development of biomethane. Gaz Métro is a major energy sector player that takes the lead in responding to the needs of its customers, regions and municipalities, local organizations and communities while also satisfying the expectations of its partners (GMi and Valener) and employees.


Investors and analysts
Caroline Warren
Investor Relations
514 598-3324

Marie-Christine Demers
Public Affairs and Communications
514 598-3449
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