Fortis Inc. Announces Renewal of At-The-Market Equity Program
Fortis Inc., a prominent name in the North American regulated electric and gas utility sector, has communicated its plans to rejuvenate its at-the-market equity program (ATM Program). The corporation is prepared to issue up to C$500,000,000 (or its U.S. dollar equivalent) in common shares, enhancing its financial maneuverability for capital projects.
Details of the ATM Program
This renewed equity program is designed for Fortis to sell its common shares from its treasury on an as-needed basis, maintaining flexibility over the timing and volume of these sales. Shares will be traded on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE) at prevailing market prices, which may differ among purchasers during the sales period. This initiative is slated to remain active until 2027 unless Fortis decides to terminate it earlier.
Financial Objectives and Use of Proceeds
The proceeds obtained from this program will primarily support general corporate needs. By continually adapting its financial strategies, Fortis aims to effectively navigate market conditions and fulfill its capital investments.
Engagement with Financial Institutions
To facilitate the ATM Program, Fortis has established partnerships with several financial institutions, including CIBC World Markets Inc. and TD Securities Inc. These institutions will act as agents to assist with the distribution of shares, ensuring a streamlined and effective sales process.
Documentation and Offers
The operations of the ATM Program are backed by a robust set of documents, including a prospectus supplement and an equity distribution agreement. These documents specify the terms under which shares will be marketed and sold, enhancing transparency and trust in the system.
About Fortis Inc.
Fortis stands out as a well-established and diversified leader in the utility industry, generating $12 billion in revenue in 2023. With a total asset portfolio valued at approximately $70 billion, the corporation proudly serves utility customers across various regions. Its dedicated workforce of around 9,600 employees illustrates its commitment and capacity to meet energy needs efficiently.
Market Position and Future Outlook
As a publicly traded entity on both TSX and NYSE under the symbol FTS, Fortis is well-positioned to leverage this renewed ATM Program. As energy demands continue to evolve, Fortis remains proactive in enhancing its infrastructure and service delivery, setting the stage for future growth.
Frequently Asked Questions
What is the ATM Program announced by Fortis Inc.?
The ATM Program allows Fortis to issue common shares and raise capital as needed to support its projects and operations.
What is the amount Fortis Inc. intends to raise through the ATM Program?
Fortis intends to raise up to C$500,000,000 through this program, convertible to its U.S. dollar equivalent.
How will the funds from the ATM Program be utilized?
The funds will primarily be utilized for general corporate purposes, helping to support Fortis's $12 billion revenue goals.
Which exchanges will the common shares be traded on?
The common shares will be traded on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).
What is the significance of the renewed ATM Program for Fortis Inc.?
This renewed program offers Fortis greater financial flexibility, allowing it to adapt to market conditions and support its ongoing capital investments effectively.
