Emera Inc. Completes Major Bond Offering of $500 Million

Emera Inc. Completes Major Bond Offering

Emera Incorporated (TSX:EMA) has reached a significant milestone with the completion of a $500 million bond offering. This offering involves 4.048% bonds under the Maritime Link Financing Trust, denoted as Series B, which are set to mature on December 1, 2052. These bonds were offered at an attractive price of $999.97 per $1,000 principal amount, reflecting strong demand in the current market.

Financing Details and Structure

Leading the offering were notable financial institutions including RBC Dominion Securities Inc., CIBC World Markets Inc., and Scotia Capital Inc. They were joined by other prominent firms such as BMO Nesbitt Burns Inc., TD Securities Inc., and National Bank Financial Inc. Together, they ensured the successful placement of the bonds, underscoring the strong confidence in Emera's financial health and strategic vision.

Guaranteed Stability and High Ratings

The bonds are backed by a guarantee from Canada, providing a direct, unconditional, and irrevocable obligation. This unique backing gives the bonds a strong foundation, allowing them to carry the full faith and credit of the Canadian government. Notably, the bonds received an impressive credit rating of 'AAA' from both Standard & Poor’s and Morningstar DBRS, indicating exceptional credit quality and reliability.

Use of Proceeds

The net proceeds from this bond offering will be allocated strategically. NSP Maritime Link Inc. (NSPML) will receive the funds to facilitate several critical financial activities. Initially, the funds will cover financing fees. Subsequently, they will refund payments made by Nova Scotia Power Incorporated (NSPI) related to principal and interest on Series A Bonds from June 1, 2018, through December 1, 2024. Lastly, part of the offering will assist NSPI in making scheduled payments on June 1, 2025, related to the Series A Bonds.

Long-Term Financial Planning

This offering exemplifies Emera's commitment to long-term financial planning and sustainability. While the bonds are not registered under U.S. Securities Act of 1933 and cannot be offered or sold in the United States without proper registration, the company maintains a strong operational focus on its North American ventures, ensuring security for its investors.

Commitment to Future Growth

Emera is dedicated to advancing its energy services and enhancing customer experience across its operations. The company places significant emphasis on integrating new technologies to improve its service offerings. By investing in renewable energy sources and reducing emissions, Emera is actively contributing to a sustainable energy landscape.

About Nova Scotia Power

NSPI, as a subsidiary of Emera Inc., plays a crucial role in meeting the energy needs of approximately 553,000 customers in the region. With a robust focus on reliability and customer service, NSPI works diligently to enhance its service and adapt to the evolving energy market. The company employs over 2000 staff and manages $4.5 billion in operating assets, reflecting its strong presence in the energy sector.

About Emera

Emera, headquartered in Halifax, Nova Scotia, is a leading North American energy provider serving around 2.5 million customers through a diverse portfolio of regulated electric and natural gas utilities. The company embodies a commitment to delivering safe, reliable energy while investing in cleaner energy solutions. With a dedicated team of 7,300 employees, Emera emphasizes its mission to energize communities and create a sustainable energy future.

Frequently Asked Questions

What is the purpose of the $500 million bond offering?

The proceeds from the bond offering are intended to cover financing fees, refund previous principal and interest payments, and assist in future scheduled payments for Nova Scotia Power.

What companies led the bond offering?

The bond offering was led by financial institutions such as RBC Dominion Securities Inc., CIBC World Markets Inc., and Scotia Capital Inc., among others.

What is the maturity date for the Series B bonds?

The Series B bonds are set to mature on December 1, 2052.

How are the bonds rated in terms of credit quality?

The bonds received a credit rating of 'AAA' from both Standard & Poor’s and Morningstar DBRS, indicating high credit quality.

What is Emera's focus in the energy sector?

Emera focuses on delivering reliable energy services, investing in renewable energy technologies, and enhancing customer service standards across its operations.

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