The Securities Commission granted an exemption from the prospectus requirement for ENMAX Corporation’s trades of commercial paper/short-term debt instruments. This exemption was necessary because the instruments did not meet the minimum credit rating condition required by section 2.35 of National Instrument 45-106 Prospectus and Registration Exemptions. Previously, ENMAX’s notes had a sufficient rating, but a downgrade in March 2020 disqualified them from the standard exemption.
The exemption is subject to several conditions: the notes must not be convertible or exchangeable into other securities, must not be a securitized product, and must have a rating at or above specified levels from recognized rating organizations. Sales must be made to accredited investors (Canadian Qualified Purchasers) and through registered investment dealers (Canadian Dealers). These dealers must ensure that sales are only made to qualified purchasers.
This decision is based on the Securities Act, R.S.A., 2000, c. S-4, s. 144, and is set to expire on December 31, 2025. The Alberta Securities Commission is the principal regulator for this application, and the decision also applies to Ontario and other Canadian jurisdictions under the Multilateral Instrument 11-102 Passport System.