The Securities Commission has granted Nova Scotia Power Incorporated (NSPI) an exemption from the prospectus requirement for the distribution of certain short-term debt instruments, specifically negotiable promissory notes or commercial paper with a maturity of no more than one year. This exemption is conditional and is based on the inability of NSPI to meet the credit rating threshold previously required under section 2.35 of National Instrument 45-106 – Prospectus Exemptions, due to downgrades by S&P Global Ratings and DBRS Limited.
The exemption allows NSPI to distribute these notes to Canadian Qualified Purchasers through registered Canadian Dealers, provided the notes are not convertible or exchangeable into other securities, are not securitized products, and have a credit rating at or above certain specified categories. The exemption is subject to several conditions, including that the notes must be sold in denominations of at least $250,000 and that the Canadian Dealers must ensure sales are only made to eligible purchasers.
The exemption is set to expire on February 9, 2028, unless extended or terminated earlier by the regulatory authorities. The decision is supported by the Securities Act of Nova Scotia and Ontario and is consistent with the multi-jurisdictional process for exemptive relief applications.