Gaz Métro announces closing of an equity offering of $260 million by way of private placement

June 28, 2012 - Press releases

Montréal, June 28, 2012 – Gaz Métro inc. (“GMi”), as General Partner of Gaz Métro Limited Partnership (“Gaz Métro”), is pleased to announce that Gaz Métro has completed an equity offering by issuing by way of a private placement 17,333,333 new units from its treasury at a price of $15.00 per unit to its two Partners, GMi and Valener Inc. (“Valener”), pro rata based on their respective share of units outstanding, for aggregate gross proceeds of approximately $260 million. This equity offering was performed in connection with Gaz Métro’s acquisition of Central Vermont Public Service Corporation, the closing of which was announced yesterday, and the proceeds of the offering will be used to reimburse short term borrowings made under GMi’s existing credit facility to finance a portion of the acquisition and for general corporate purposes.

GMi financed its subscription of new units by way of issuance of subordinated debentures to Noverco Inc. for gross proceeds of approximately $185 million.

Overview of Valener, Gaz Métro and GMi
Valener owns an economic interest of approximately 29% in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from Gaz Métro’s diversified profile, both in terms of geography and business segment. Valener also owns a 24.5% indirect interest in the wind power projects jointly developed with Gaz Métro and Boralex Inc. on the private lands of Séminaire de Québec. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition agreement in favour of Gaz Métro and to applicable limitations under its credit facility. Valener’s common shares are listed on the Toronto Stock Exchange under the “VNR” trading symbol.

With over $3.8 billion in assets as at March 31, 2012, Gaz Métro is Quebec’s leading natural gas distributor. Its 10,000 kilometre network serves 300 municipalities. Gaz Métro has operated in this regulated industry since 1957 and is the trusted energy provider of its customers in Quebec and Vermont, who choose natural gas for its competitive price, efficiency, comfort and environmental benefits. Gaz Métro is also present in the electricity distribution market, natural gas transportation and storage, the development of innovative energy projects such as wind power, natural gas as fuel for the transportation industry and biomethanation. Gaz Métro is committed to the satisfaction of its customers, Partners (GMi and Valener), employees and the communities it serves.

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

For more information: 

Catherine Houde 
Media and Public Relations 

Investors and analysts
Caroline Warren
Investor Relations

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