Archives

Hydro One prices $550 million, Medium Term Note Offering New Debt issue over-subscribed

TORONTO, June 20, 2001 - Hydro One Inc. today announced the pricing of its first medium term note offering in Canada of $550 million principal amount.

The notes consist of two series, as follows:

• Series 1, $250 million principal amount of senior unsecured notes due 2011, will bear interest at a rate of 6.40%, payable semi-annually.
• Series 2, $300 million principal amount of senior unsecured notes due 2032, will bear interest at a rate of 6.93%, payable semi-annually.

"We are pleased with the tremendous response to our second Hydro One debt offering which was 100% over-subscribed," said Eleanor Clitheroe, President and Chief Executive Officer of Hydro One. "This follows our successful $1 billion debt offering last year, which at the time was the second largest in Canadian history and was also over-subscribed. We look forward to a beneficial, long-term relationship with our debt investors."

The closing of the offering is scheduled for June 22, 2001. Net proceeds will be used to repay a portion of the Company's indebtedness to Ontario Electricity Financial Corporation (OEFC) which was incurred when Ontario Hydro was restructured in 1999, as well as finance net capital requirements. Hydro One has currently paid down $1.43 billion of the debt owed to OEFC and has plans to pay down an additional $440 million by the end of the year.

The offering is being sold by a syndicate of investment dealers consisting of BMO Nesbitt Burns Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc., TD Securities Inc., National Bank Financial Inc., RBC Dominion Securities Inc., and Scotia Capital Inc.

Hydro One Inc., through its subsidiaries, is principally engaged in electricity transmission, distribution and energy services businesses. Through a wholly owned subsidiary, Hydro One Inc. owns and operates the largest transmission and distribution system in Ontario and one of the 10 largest in North America.

-30-

For further information, please contact:

Terry Young
Media Relations
(416) 345-6072

Ian Chadsey
Investor Relations
(416) 345-6136