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Énergir announces a private placement of $400 million Series 2023-1 First Mortgage Bonds
Montréal, May 31, 2023 – Énergir Inc. and Énergir, L.P. announce today a private placement by Énergir, L.P. of $400 million aggregate principal amount of Series 2023-1 First Mortgage Bonds (the “Series 2023-1 Bonds”). The Series 2023-1 Bonds will be secured by a hypothec on the assets of Énergir, L.P. The Series 2023-1 Bonds, bearing interest at the rate of 4.83% per annum, are expected to be dated June 2, 2023 and to mature on June 2, 2053 and would be issued at a price of $999.53 per $1,000 principal amount. The Series 2023-1 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 2023-1 Bonds is expected to occur on June 2, 2023, subject to customary closing conditions.
Énergir, L.P. intends to use the proceeds to repay existing indebtedness and for general corporate purposes. The Series 2023-1 Bonds are offered on an agency basis through a syndicate of dealers led by Desjardins Capital Markets, National Bank Financial Markets and Scotia Capital Inc. as joint bookrunners and co-lead private placement agents, together with CIBC World Markets Inc., TD Securities Inc., BMO Capital Markets, RBC Capital Markets and Casgrain & Company Limited, as agents.
The Series 2023-1 Bonds have not been and will not be qualified for disribution to the public under applicable Canadian securities laws and, accordingly, any offer or sale of the Series 2023-1 Bonds in Canada is being made on a basis which is exempt from the prospectus requirements of such securities laws. The Series 2023-1 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 2023-1 Bonds in the United States.
About Énergir inc. and Énergir, L.P.
Énergir Inc. mainly holds a 71% interest in Énergir, L.P., for which it acts as the General Partner.
With more than $9 billion in assets, Énergir, L.P. is a diversified energy business whose mission is to meet the energy needs of approximately 540,000 customers and the communities it serves in Quebec and Vermont in an increasingly sustainable way. Énergir, L.P. is the largest natural gas distribution company in Quebec, where, through its joint ventures, it also generates electricity from wind power. And through its subsidiaries and other investments, Énergir, L.P. has a presence in the United States, where it generates electricity from hydraulic, wind and solar sources; it is also the largest electricity distributor and the sole pipeline natural gas distributor in the State of Vermont. Énergir, L.P. values energy efficiency and invests its resources and continues its 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. strives to become the partner of choice for those seeking a better energy future.
This news release contains forward-looking statements, including, but not limited to, statements relating to the expected timing completion and use of proceeds of the proposed sale of Series 2023-1 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. and Énergir, L.P. assume 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 2023-1 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 2023-1 Bonds will occur, or that it will occur at the expected time indicated in this news release.