Hydro One Inc. Initial Public Offering of $1B Debentures

Hydro One completed its initial public offering in Canada and the United States of $1 billion principal amount of senior unsecured debentures on June 1, 2000. The proceeds from the offering are to be used to repay a portion of Hydro One’s indebtedness incurred in connection with the acquisition of substantially all of the assets, liabilities, rights and obligations of Ontario Hydro’s electricity transmission, distribution and energy services on April 1, 1999.

Hydro One, through its subsidiaries, is principally engaged in the electricity transmission, distribution and energy services businesses. Through its wholly-owned subsidiary, Hydro One Networks Inc., Hydro One operates the largest transmission and distribution system in Ontario and one of the ten largest in North America.

Hydro One was represented by Osler, Hoskin & Harcourt LLP with a team comprised of Christopher Portner, Deborah Alexander, Douglas Marshall, Adam Joseph and Katy Waugh, with tax advice provided by David Tetreault, Sabrina Wong and Kimberley Wharram. The underwriters, Scotia Capital Inc., BMO Nesbitt Burns Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., CIBC World Markets Inc., TD Securities Inc., Goldman Sachs Canada Inc. and National Bank Financial Inc. were represented by the Davies, Ward & Beck team of Berl Nadler, Patricia Olasker and Robert Murphy. Glenn Reiter and Richard Fenyes of Simpson Thacher & Bartlett (New York) acted as US counsel to Hydro One and Brice Voran and Leslie McCallum of Shearman & Sterling (Toronto) acted as US counsel to the underwriters.