EnerCare Solutions Inc. Completes Offering of $250 Million of Series 2012-1 Senior Unsecured Notes and Issues Notice to Redee...
November 21 2012 - 9:44AM
Marketwired
EnerCare Inc. (TSX:ECI) and EnerCare Solutions Inc. ("EnerCare
Solutions") today announced that EnerCare Solutions has completed
its previously announced offering of $250 million aggregate
principal amount of 4.30% Series 2012-1 Senior Unsecured Notes due
November 30, 2017 (the "Notes"). The notes were sold at a price of
$99.918 per $100.00 principal amount, with an effective yield of
4.318% per annum if held to maturity. The Notes received ratings of
"BBB(high)", with a "stable" trend from DBRS Limited and "A-", with
a "stable" outlook from Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc. The Notes were offered
under a prospectus supplement dated November 15, 2012 to EnerCare
Solutions' short form base shelf prospectus dated July 20, 2012
filed with the securities regulatory authorities in each of the
provinces and territories of Canada. The Notes were sold in each of
the provinces of Canada by a syndicate of agents led by TD
Securities Inc. and National Bank Financial Inc., and including RBC
Dominion Securities Inc. and CIBC World Markets Inc.
The proceeds of the offering will be used primarily by EnerCare
Solutions to fund the redemption of its outstanding 5.25% Series
2010-1 Senior Unsecured Notes due March 15, 2013 (the "Series
2010-1 Notes"), including the applicable make-whole premium. The
principal amount of Series 2010-1 Notes outstanding as of the date
hereof is $240 million. Holders of the Series 2010-1 Notes will
receive a total redemption price of approximately $1,021.95 per
$1,000.00 principal amount of Series 2010-1 Notes, which includes
approximately $13.95 in accrued and unpaid interest (up to but
excluding the redemption date), for an aggregate redemption price
of $245,268,493.15. The balance of the proceeds of the offering
will be used by EnerCare Solutions for general corporate
purposes.
EnerCare Solutions will today deliver a notice to Computershare
Trust Company of Canada, as trustee for the Series 2010-1 Notes and
the registered holder of such Series 2010-1 Notes (CDS Clearing and
Depository Services Inc.), with respect to the redemption of all of
the issued and outstanding Series 2010-1 Notes in accordance with
the terms of the trust indenture governing the terms of the Series
2010-1 Notes. EnerCare Solutions will redeem the Series 2010-1
Notes on December 21, 2012.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction.
The securities being offered have not been approved or disapproved
by any regulatory authority nor has any such authority passed upon
the accuracy or adequacy of the prospectus supplement or the short
form base shelf prospectus.
The securities referred to herein 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 or to or for the account of U.S. persons.
About EnerCare Inc. and EnerCare Solutions Inc.
EnerCare and EnerCare Solutions own a portfolio of approximately
1.2 million installed water heaters and other assets, rented
primarily to residential customers in Ontario. EnerCare also owns
EnerCare Connections Inc., a leading sub-metering company, with
metering contracts for condominium and apartment suites in Ontario,
Alberta and elsewhere in Canada.
Additional information regarding EnerCare and EnerCare Solutions
is available on SEDAR at www.sedar.com or through EnerCare's
website at http://investors.enercare.ca. Information on the
sub-metering business is also available at
www.enercareconnections.com.
Contacts: EnerCare Inc. and EnerCare Solutions Inc. Evelyn
Sutherland CFO 416.649.1860esutherland@enercare.ca