October 9, 2008 - Financial releases
Montréal, October 8, 2008 – Gaz Métro inc. (“GMi”) announced today the offering of
$150 million of 5.40% 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 5.40% per annum, will be dated October 14, 2008 and will mature on April 15, 2013. Standard & Poor’s Rating Services and DBRS Limited have each assigned an A rating to the Series L Bonds. A prospectus supplement and a pricing supplement relating to this issue have been filed today with the securities regulatory authorities in each of the provinces and territories of Canada and will be available on the SEDAR website at www.sedar.com under Gaz Métro inc.’s profile.
Proceeds from this issue will be loaned to Gaz Métro on substantially similar terms as to interest rate and maturity as those of the Series L Bonds. The proceeds will be added to Gaz Métro’s general funds and will be used to reimburse all outstanding 6.05% Series H First Mortgage Bonds of GMi of an aggregate principal amount of $100,000,000 maturing on November 10, 2008 and a portion of the borrowings under the revolving credit facility as well as for general corporate purposes.
The Series L Bonds will be 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.
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 release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
Gaz Métro Overview
With more than $3.3 billion of assets and approximately 1,300 employees in Quebec, Gaz Métro is a leading Quebec energy company and one of Canada’s largest natural gas distributors. Gaz Métro serves some 171,000 customers in Quebec through an underground pipeline network of almost 10,000 km.
Through its wholly-owned subsidiary, Northern New England Energy Corporation (NNEEC),
Gaz Métro has been active in New England’s energy industry since 1986 and has about 300 employees there. NNEEC includes Vermont Gas Systems, the sole natural gas distributor in Vermont, and Green Mountain Power Corporation, the second largest electricity distributor in that State.
Through subsidiaries or in partnership with other investors, Gaz Métro is active in natural gas transportation and storage as well as energy services and water and waste water systems and fibre optic networks. Gaz Métro also participates in various development projects in the energy sector.
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