Fortis Inc. Completes Private Placement of US$500 Million in Senior Unsecured Notes

09/15/2014 16:40 EST



Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS) announced today the completion of its previously announced US$500 million private placement of Senior Unsecured Notes (the "Notes") to US-based institutional investors under a note purchase agreement dated May 8, 2014 (the "Offering"). US$287 million of Notes were issued today and US$213 million of Notes were issued on June 30, 2014, resulting in aggregate gross proceeds of US$500 million from the Offering. The Notes issued in the Offering have terms to maturity ranging from five years to 30 years and coupon rates ranging from 2.92% to 5.03%. The weighted average term to maturity of the Notes is approximately 11 years and the weighted average coupon rate is 3.85%.

Net proceeds from the initial issuance of Notes in June were used to refinance existing indebtedness, including repayment of US-dollar drawings on the Corporation's committed credit facility, and for general corporate purposes. The net proceeds from the issuance of Notes today will be used to refinance existing indebtedness, including the US$150 million 5.74% Senior Unsecured Notes of Fortis maturing on October 30, 2014 and the C$125 million 5.56% Unsecured Debentures of a subsidiary maturing today, with the balance being used to repay other outstanding indebtedness of the Corporation.

The Notes have not been registered under the Securities Act of 1933, as amended, or under any state securities laws.

This media release is not an offer of the Notes for sale or a solicitation of an offer to purchase the Notes in the United States or Canada, or in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Wells Fargo Securities, LLC and Morgan Stanley & Co. LLC acted as joint placement agents for the sale of the Notes.

Fortis is the largest investor-owned electric and gas distribution utility in Canada, with total assets approaching C$25 billion and fiscal 2013 revenue exceeding C$4 billion. Its regulated utilities account for 93% of total assets and serve more than 3 million customers across Canada and in the United States and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York. The Corporation's non-utility investment is comprised of hotels and commercial real estate in Canada. For more information, visit or

Fortis includes forward-looking information in this media release within the meaning of applicable securities laws in Canada ("forward-looking information"). The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities, and it may not be appropriate for other purposes. All forward-looking information is given pursuant to the safe harbour provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on assumptions developed using information currently available to the Corporation's management. Although Fortis believes that the forward-looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect the Corporation, reference should be made to the Corporation's continuous disclosure materials filed regularly with Canadian securities regulatory authorities and to the heading "Business Risk Management" in the Corporation's annual and quarterly Management Discussion and Analysis. Except as required by law, the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.

Mr. Karl Smith
Executive Vice President, Chief Financial Officer
Fortis Inc.
(709) 737-2822

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