Hydro One to redeem outstanding series 1 preferred shares on Nov. 20

By Taylor Fox

New York, Sept. 23 – Hydro One Ltd. plans to redeem all of its outstanding series 1 preferred shares on Nov. 20, according to an 8-K filing with the Securities and Exchange Commission.

There are currently 16,720,000 shares issued and outstanding, which are held by Her Majesty the Queen in Right of Ontario, as represented by the minister of energy, Northern Development & Mines.

The shares will be redeemed at a price of C$25 per share, plus dividends, for a total red emption price of C$442,441,250.

The redemption will be funded by incurring C$425 million of additional debt through the issuance of debt securities or by a combination of drawing either on a current credit facility or a new facility.

The series 1 preferred shares are not exchangeable or convertible into the common shares of the company and the redemption will have no impact on the province’s voting rights or ownership percentage of the outstanding common shares of Hydro One

Hydro One and its subsidiaries are based in Toronto, providing and distributing power for the province of Ontario.

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