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Last updated on April 17, 2014 at 1:21 EDT

Gaz Metro announces a private placement of senior secured notes

February 5, 2013

MONTREAL, Feb. 5, 2013 /CNW Telbec/ – Gaz Métro inc. (“GMi“) announced today that it has entered into an agreement to sell to
certain institutional investors in the United States on a private
placement basis U.S.$200 million aggregate principal amount of 4.04% senior secured notes due 2043 and 4.19% senior secured notes due
2048 (together, the “Notes“). The Notes will be secured by a guarantee as to payment of principal
and interest by Gaz Métro Limited Partnership (“Gaz Métro“), together with collateral security backed by the assets of GMi and
Gaz Métro.

Proceeds from the private placement will be loaned by GMi to Gaz Métro
on substantially similar terms as to interest rate and maturity, and
will be used by Gaz Métro for the refinancing of existing debt and for
general corporate purposes. The funding of the Notes is anticipated to
occur prior to April 30, 2013.

The Notes have not been registered under the U.S. Securities Act of
1933, as amended (the “Securities Act“) or any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration under the Securities Act and applicable state securities
laws.

Overview of Gaz Métro and GMi

GMi mainly holds an economic interest of approximately 71% in Gaz Métro,
for which it acts as the General Partner and a financing vehicle.

With more than $5 billion in assets, Gaz Métro is a leading energy
provider. It is the largest natural gas distribution company in Quebec,
where its 10,000 km underground network of pipelines serves 300
municipalities and more than 185,000 customers. Gaz Métro is also
present in Vermont, producing electricity and distributing electricity
and natural gas to cater to the needs to some 300,000 customers. Gaz
Métro is actively involved in the development of innovative,
sustainability-oriented energy projects such as the production of wind
power, the use of natural gas as a transportation fuel and the
development of biomethane as a renewable energy source. Gaz Métro is
committed to ensuring the satisfaction of its customers, providing
support to businesses, local organizations, families and communities,
and meeting the needs of its partners (Gaz Métro inc. and Valener) and
employees. www.gazmetro.com

SOURCE GAZ METRO


Source: PR Newswire