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Énergir announces a private placement of $300 million series V first mortgage bonds
April 14, 2020 - Press releases
Montréal, April 15, 2020 – Énergir Inc. announces today a private placement of $300 million of Series V First Mortgage Bonds (the “Series V Bonds”). The Series V Bonds will be secured by a guarantee as to payment of principal and interest by Énergir, L.P., together with collateral security backed by the assets of Énergir Inc. and Énergir, L.P. The Series V Bonds, bearing interest at the rate of 2.10% per annum, are expected to be dated April 16, 2020 and to mature on April 16, 2027 and would be issued at a price of $999.87 per $1,000 principal amount. The Series V Bonds have been assigned a provisional rating of A by Standard & Poor’s and a provisional rating of A by DBRS Limited. Closing of the offering of the Series V Bonds is expected to occur on April 16, 2020, subject to customary closing conditions.
Énergir Inc. will lend the proceeds from the private placement to Énergir, L.P. on substantially similar terms as to interest rate and maturity. Énergir, L.P. intends to use the proceeds to repay existing indebtedness and for general corporate purposes. The Series V Bonds are offered on an agency basis through a syndicate of dealers led by BMO Nesbitt Burns Inc., National Bank Financial Inc. and Desjardins Securities Inc. as joint bookrunners and co-lead private placement agents, together with Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., MUFG Securities (Canada) Ltd. and Casgrain & Company Limited, as agents. The Series V 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 V 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 V 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 V Bonds in the United States. Énergir Inc. also filed today, with the securities regulatory authorities in the provinces and territories of Canada, an informative document with respect to the consequences of Covid-19 including on the risk factors related to Énergir Inc. and Énergir, L.P., which is available online at www.sedar.com.
About Énergir Inc. and Énergir, L.P. Énergir Inc. mainly holds an economic interest of approximately 71% in Énergir, L.P. for which it acts as the general partner and a financing vehicle.
With more than $8 billion in assets, Énergir, L.P. is a diversified energy company whose mission is to meet the energy needs of its 525,000 customers and the communities it serves in an increasingly sustainable way. In Québec, it is the leading natural gas distribution company and also produces, through its subsidiaries, electricity from wind power. In the United States, through its subsidiaries, the company operates in nearly fifteen states, where it produces electricity from hydraulic, wind and solar sources, in addition to being the leading electricity distributor and the sole natural gas distributor in Vermont. Énergir, L.P. values energy efficiency and invests both resources and efforts in innovative energy projects such as renewable natural gas and liquefied and compressed natural gas. Through its subsidiaries, it also provides a variety of energy services. Énergir, L.P. hopes to become the partner of choice for those striving toward a better energy future.
Forward-Looking Statements This news release contains forward-looking statements, including, but not limited to, statements relating to the expected timing and completion of the proposed sale of Series V Bonds and other statements that are not historical facts. Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from expectations expressed in or implied by such forward-looking statements. The forward-looking statements contained in this news release are as at the date of this news release and, Énergir inc. assumes no obligation to update or revise any forward-looking statements to reflect new events or circumstances except as required by applicable securities laws. Forward-looking statements are provided herein for the purpose of giving information about the proposed private placement referred to above. Readers are cautioned that such information may not be appropriate for other purposes. The timing and completion of the abovementioned proposed sale of the Series V Bonds is subject to customary closing terms and other risks and uncertainties. Accordingly, there can be no assurance that the proposed sale of the Series V Bonds will occur, or that it will occur at the expected time indicated in this news release.