HUC Completes Debenture Offering

On July 18, 2002, Hamilton Utilities Corporation (HUC) issued a $105 million principal amount of 6.25 per cent 10 year debentures by way of a private placement, due July 30, 2012. The notes were rated A+ by Standard & Poor’s. HUC is owned by the City of Hamilton and is a holding company for Hamilton Hydro Inc., the regulated local distribution company, and Hamilton Hydro Services Inc., an unregulated utilities services company.

CIBC World Markets Inc. and RBC Dominion Securities Inc. acted as underwriters in the offering. HUC used the proceeds from the debenture offering together with some surplus cash to repay an amount of $137 million owed to the city. HUC also entered into a credit facility with CIBC.

Borden Ladner Gervais LLP represented HUC, with a team that included Linda Bertoldi and Vinay Mehta (energy), Paul Findlay, Conor Fitzpatrick and Daniel Westreich (corporate/securities), Joanne Foot (banking), Stephen Fyfe and Kevin Fritz (tax). Gowling Lafleur Henderson LLP represented the underwriters, with a team that included Paul Harricks, Martha McKinnon and Paul Grod. Joel Scoler and Seán O’Neill of McCarthy Tétrault LLP represented CIBC in connection with the credit facilities made available to HUC.