Hydro-Quebec launches tender, exchange offers for series GL floaters

By Marisa Wong

Los Angeles, July 18 – Hydro-Quebec announced two separate invitations to holders of its $400 million undated floating-rate notes, series GL (ISIN: GB0044519493) guaranteed by Quebec, with $200.81 million outstanding, according to a notice on Monday.

The issuer is inviting holders to either

• Tender any or all of their existing notes for purchase for cash at a price of 70, plus accrued interest; or

• Offer any or all of their existing notes for exchange on a par-for-par basis for new U.S. dollar-denominated undated floating-rate notes, series JT, to be issued by Hydro-Quebec and guaranteed by Quebec.

The new notes (ISIN: XS2645732467) bear interest at 5.3125% for the period from March 31 to but excluding the last business day falling in September. After that, the coupon will be compounded SOFR plus the original margin of 6.25 basis points plus a spread adjustment of 42.826 bps.

The offers are being made in connection with the replacement of Libor with SOFR.

The offers began on July 17 and will expire at 11 a.m. ET on July 25.

Results will be announced on July 26.

Settlement is expected to occur on July 31.

Merrill Lynch International (+44 20 7996 5420; DG.LM-EMEA@bofa.com) is acting as dealer manager for the offers, and Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: David Shilson; hydroquebec@is.kroll.com; https://deals.is.kroll.com/hydroquebec) is acting as tender and exchange agent.

Hydro-Quebec is a Montreal-based electric utility.

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