Gaz Métro inc. announces the closing of a $100 million offering of 4,93% Series L first mortgage bonds

June 18, 2009 - Financial releases

Montréal, June 18, 2009 – Gaz Métro inc. (“GMi”) announced today the closing of its previously announced offering of $100 million of 4.93% Series L First Mortgage Bonds (the “Series L Bonds”) guaranteed by Gaz Métro Limited Partnership (“Gaz Métro”).

The Series L Bonds, bearing interest at the rate of 4.93% per annum, will mature on June 18, 2019. Standard & Poor’s Rating Services and DBRS Limited have each assigned an A rating to the Series L Bonds. The prospectus supplement and the pricing supplement relating to this issue are available on the SEDAR website at www.sedar.com under Gaz Métro inc.’s profile.

This offering of Series L Bonds was made to address the upcoming maturity of all outstanding 6.95% Series H First Mortgage Bonds of GMi in the aggregate principal amount of $100,000,000 (the “Series H Bonds”) on November 2, 2009. Proceeds from this issue were loaned to Gaz Métro on substantially similar terms as to interest rate and maturity as those of the Series L Bonds. These proceeds were added to Gaz Métro’s general funds and were used to prepay Gaz Métro’s outstanding indebtedness under the bridge-loan drawn in connection with the acquisition of Green Mountain Power Corporation by Northern New England Energy Corporation which would have matured on October 9, 2009, and for general corporate purposes. Upon maturity of the Series H Bonds, GMi expects to reimburse their holders through the same sources of financing that would otherwise have been used, among other purposes, for the reimbursement of the bridge-loan.

The Series L Bonds were offered on an agency basis by a syndicate of dealers led by BMO Nesbitt Burns Inc., and including Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., Laurentian Bank Securities Inc. and Casgrain & Company Limited.

This press release does not constitute an offer to sell or the solicitation of an offer to buy Series L Bonds in any jurisdiction.

The Series L Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States of America. This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities in the United States.

Gaz Métro Overview
With nearly $3.6 billion in assets, Gaz Métro is Quebec’s leading natural gas distribution company. Working in this regulated industry for over 50 years, Gaz Métro has become the trusted energy provider to over 180,200 customers in Quebec and 134,500 customers in Vermont while developing the skills and expertise needed to diversify beyond natural gas. Gaz Métro’s prudent growth strategy has been met with the successful entry into electricity distribution in Vermont and in the wind power sector. Offering historically strong and stable distributions with a competitive spirit, Gaz Métro is committed to its customers, unitholders, employees and community.

For additional information:

Investors and analysts
Caroline Warren
Investor Relations
514-598-3324

Media
Marie-Noëlle Cano
Media and Public Relations
514-598-3449


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