EDFIN Completes First Pooled Debenture Financing

Electricity Distributors Finance Corporation (EDFIN) completed its first pooled debenture financing on August 15, 2002. EDFIN is an Ontario corporation that was formed to acquire debt instruments issued by Ontario local electricity distribution companies and offer and sell ownership interests in those instruments to investors.

The five local electricity distribution companies that participated in the first EDFIN offering; Barrie Hydro Distribution Inc., ENWIN Powerlines Ltd., Markham Hydro Distribution Inc., Richmond Hill Hydro Inc. and Hydro Vaughan Distribution Inc., issued unsecured debentures in the total principal amount of $175 million to EDFIN. EDFIN sold undivided co-ownership interests in the debentures to investors, with the proceeds being paid to the five local distribution companies for the purchase of their debentures. The debentures have a 10-year term to maturity and bear interest at 6.45 per cent per annum.

The process of bringing EDFIN to market was assisted by MEARIE Management Inc., who is the manager of EDFIN. TD Securities Inc. assisted in structuring the financing and acted as lead underwriter for the offering, with a syndicate that included BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.

Daniel Gormley, Allan Goodman, Donald Henderson, Keren Groll and Maureen Berry of Goodmans LLP acted for the participating local electricity distribution companies and EDFIN. The underwriters were represented by Blake, Cassels & Graydon LLP, with a team consisting of David Toswell, Brendan Reay, Ric McIvor, Scott Mahaffy and Peter Lee.