TORONTO, ONTARIO–(Marketwire – Nov. 21, 2012) – EnerCare Inc. (TSX:ECI) and EnerCare Solutions Inc. ("EnerCare Solutions") today announced that EnerCare Solutions has completed its previously announced offering of $250 million aggregate principal amount of 4.30% Series 2012-1 Senior Unsecured Notes due November 30, 2017 (the "Notes"). The notes were sold at a price of $99.918 per $100.00 principal amount, with an effective yield of 4.318% per annum if held to maturity. The Notes received ratings of "BBB(high)", with a "stable" trend from DBRS Limited and "A-", with a "stable" outlook from Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. The Notes were offered under a prospectus supplement dated November 15, 2012 to EnerCare Solutions' short form base shelf prospectus dated July 20, 2012 filed with the securities regulatory authorities in each of the provinces and territories of Canada. The Notes were sold in each of the provinces of Canada by a syndicate of agents led by TD Securities Inc. and National Bank Financial Inc., and including RBC Dominion Securities Inc. and CIBC World Markets Inc.
The proceeds of the offering will be used primarily by EnerCare Solutions to fund the redemption of its outstanding 5.25% Series 2010-1 Senior Unsecured Notes due March 15, 2013 (the "Series 2010-1 Notes"), including the applicable make-whole premium. The principal amount of Series 2010-1 Notes outstanding as of the date hereof is $240 million. Holders of the Series 2010-1 Notes will receive a total redemption price of approximately $1,021.95 per $1,000.00 principal amount of Series 2010-1 Notes, which includes approximately $13.95 in accrued and unpaid interest (up to but excluding the redemption date), for an aggregate redemption price of $245,268,493.15. The balance of the proceeds of the offering will be used by EnerCare Solutions for general corporate purposes.
EnerCare Solutions will today deliver a notice to Computershare Trust Company of Canada, as trustee for the Series 2010-1 Notes and the registered holder of such Series 2010-1 Notes (CDS Clearing and Depository Services Inc.), with respect to the redemption of all of the issued and outstanding Series 2010-1 Notes in accordance with the terms of the trust indenture governing the terms of the Series 2010-1 Notes. EnerCare Solutions will redeem the Series 2010-1 Notes on December 21, 2012.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the short form base shelf prospectus.
The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered, sold or delivered, directly or indirectly, in the United States of America or to or for the account of U.S. persons.
About EnerCare Inc. and EnerCare Solutions Inc.
EnerCare and EnerCare Solutions own a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
Additional information regarding EnerCare and EnerCare Solutions is available on SEDAR at www.sedar.com or through EnerCare's website at http://investors.enercare.ca. Information on the sub-metering business is also avai lable at www.enercareconnections.com.
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