CDPQ backed Gaz Métro closes $200M mortgage bonds offering

Gaz Métro Inc. (GMI), a company indirectly controlled by Caisse de dépôt et placement du Québec (CDPQ), has completed a private placement of $200 million Series U First Mortgage Bonds. The Series U Bonds are secured by a guarantee as to payment of principal and interest by Gaz Métro Limited Partnership (GMLP) and are backed by the assets of GMi and GMLP. The Series U Bonds, bearing interest at the rate of 3.53% per annum, will mature on May 16, 2047. The Series U Bonds have been assigned a rating of A+ by Standard & Poor’s and a rating of A by DBRS Limited.

Gaz Métro Inc. will lend the proceeds from the private placement to GMLP on substantially similar terms as to interest rate and maturity. Gaz Métro Limited Partnership will use the proceeds to repay existing indebtedness and for general corporate purposes.

Gaz Métro Inc. mainly holds an economic interest of approximately 71% in Gaz Métro, for which it acts as the General Partner and a financing vehicle. Valener Inc. (TSX: VNR) holds the remaining 29% interest.

Gaz Métro Inc. is 100% owned by Noverco. Caisse de dépôt et placement du Québec (CDPQ), Fonds de Solidarité FTQ, bcIMC, Desjardins Group Pension Plan, and Université du Québec Pension Plan, through TRENCAP L.P. owns 61.11% of Noverco while Enbridge owns the remaining 38.89% of Noverco.

Gaz Métro is a leading energy provider. It is the largest natural gas distribution company in Québec, where its network of over 10,000 km of underground pipelines serves more than 300 municipalities and more than 205,000 customers. Gaz Métro is also present in Vermont, where it has more than 315,000 customers.

photo credit: Gaz Métro