Fortis Inc. Successfully Prices Major Unsecured Notes Offering

Fortis Inc. Offers Senior Unsecured Notes

Fortis Inc. (“Fortis” or the “Corporation”) (TSX: FTS) has recently announced an exciting opportunity with the pricing of its senior unsecured notes. This offering is a significant move for the corporation, as it aims to strengthen its financial position and maintain its strong presence in the North American regulated electric and gas utility industry.

Details of the Offering

On a recent day in September, Fortis revealed that it has set the offering at an impressive $500 million aggregate principal amount of senior unsecured notes, which carry an interest rate of 4.171%. These notes are due on September 9, 2031. The transaction is being facilitated by a large group of agents led by Scotia Capital Inc., TD Securities Inc., and BMO Nesbitt Burns Inc., known collectively as the “Joint Bookrunners.” They will collaborate with other financial institutions to ensure a smooth offering process.

Purpose and Utilization of Proceeds

The proceeds from this offering are strategically aimed at reinforcing Fortis’s financial structure. The net funds will partially address existing borrowings and assist in repaying maturing long-term notes. Additionally, part of the proceeds will be utilized for general corporate purposes, ensuring the corporation remains agile in its operations and future projects.

Interest Payment and Closing Date

Investors can expect interest payments on these notes to be made semi-annually on March 9 and September 9, starting in March 2025. The closing of this offering is anticipated to occur on September 9, 2024, marking a pivotal moment for Fortis as it moves forward with its financial strategies.

About Fortis Inc.

Fortis has positioned itself as a leading player in the North American utility industry, boasting an impressive revenue of $12 billion and total assets amounting to $69 billion as of mid-2024. With a dedicated workforce of approximately 9,600 employees, Fortis provides reliable utility services across five Canadian provinces, ten U.S. states, and three Caribbean countries. Its shares are proudly listed on the Toronto Stock Exchange under the symbol FTS.

Understanding the Regulatory Framework

It is crucial to note that the notes being offered have not been registered under applicable U.S. securities laws and cannot be offered or sold in the United States unless they are registered or fall under an exemption. Fortis remains committed to compliance with all applicable regulations to protect its investors and uphold the integrity of its offerings.

Commitment to Transparency

As part of its commitment to maintaining transparency, Fortis openly communicates any forward-looking information regarding its operations and expected outcomes. This proactive approach ensures that investors are well-informed about the corporation's strategic direction and the potential implications of market conditions on its performance.

Frequently Asked Questions

What are the key details of the notes offering by Fortis Inc.?

Fortis Inc. is offering $500 million in senior unsecured notes with a 4.171% interest rate, maturing on September 9, 2031.

When is the expected closing date for the offering?

The expected closing date for the offering is September 9, 2024, marking a crucial milestone for Fortis.

How will the proceeds from the offering be utilized?

The proceeds will be used to repay borrowings, cover maturing long-term notes, and fund general corporate purposes.

Who are the leading agents for the offering?

The offering is led by Scotia Capital Inc., TD Securities Inc., and BMO Nesbitt Burns Inc., referred to as Joint Bookrunners.

What is the significance of this offering for Fortis?

This offering will help Fortis enhance its financial position, allowing for strategic growth and continued service to its customers across North America.

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