On February 19, 2010, The Consumers' Waterheater Operating Trust, a wholly owned subsidiary of The Consumers' Waterheater Income Fund, completed an offering of C$240 million principal amount of 5.25% senior unsecured notes, Series 2010-1, due March 15, 2013, under its C$500 million base shelf prospectus. The notes have been rated 'A' (negative trend) by DBRS and 'A-' by Standard & Poors. The Trust also received an issuer rating of 'A-' (stable outlook) from S&P. The notes were issued under the Trust's platform indenture dated January 29, 2010.
The proceeds of the offering were applied by the Trust to repay in full the principal amount outstanding on its bridge credit facility, the proceeds of which were used to repay the Trust's 'AAA' rated Series 2003-1 A-2 senior notes that were issued in conjunction with the Fund's IPO in 2002.
The offering was led by TD Securities Inc. and included Scotia Capital Inc., Desjardins Securities Inc. and HSBC Securities (Canada) Inc.