Fortis Inc. Announces Subordinated Notes Offering
ST. JOHN'S, Newfoundland and Labrador, September 2, 2025 – Fortis Inc. (TSX: FTS) is excited to share the details of its latest financial move, which involves a significant offering of fixed-to-fixed rate subordinated notes. This strategic step is aimed at enhancing the corporation’s financial stability and future growth.
Details of the Offering
The corporation has successfully priced the offering, amounting to $750 million in aggregate principal of 5.100% fixed-to-fixed rate subordinated notes due December 4, 2055. This initiative is made possible through the support of a team of established agents, including co-leaders such as BMO Nesbitt Burns Inc., Scotia Capital Inc., and CIBC World Markets Inc. The closing of the offering is anticipated on September 4, 2025, leading to a more solid financial structure for Fortis.
Utilization of Proceeds
Fortis plans to use the net proceeds from this offering primarily to reduce existing borrowings under its revolving corporate credit facility. This move will provide greater flexibility for general corporate purposes, showcasing the company’s commitment to maintain a robust financial pillar.
The Role of Agents in This Offering
The success of Fortis’s offering is attributed to a capable syndicate of agents, also known as Joint Bookrunners, along with additional co-managers. Their collective expertise fosters trust in the execution of this offering, ensuring a streamlined process for investors.
About Fortis Inc.
Fortis stands as a dynamic leader in the North American regulated electric and gas utility industry. With anticipated revenue reaching $12 billion and total assets estimated at $73 billion, Fortis operates with a dedicated workforce of approximately 9,700 employees. These professionals are committed to serving utility customers across five Canadian provinces, ten U.S. states, and various Caribbean regions.
Fortis’s Stock Performance
The company’s shares are actively traded on the TSX under the ticker symbol FTS. This current offering and the strong financial framework position Fortis as a viable choice for investors looking to engage in the utility sector.
Financial Outlook and Commitment
Fortis remains committed to transparency and continuous communication with its stakeholders. The corporation emphasizes its dedication to maintaining a structured financial approach while exploring growth opportunities. The expected proceeds from the subordinated notes are anticipated to enhance Fortis's overall financial agility.
Future Prospects
With this substantial offering, Fortis aims to navigate the evolving utility landscape while addressing the challenges and opportunities ahead. The board’s strategic vision places emphasis on sustainable growth, ensuring a stable yet progressive future for the corporation and its stakeholders.
Frequently Asked Questions
What are the details of the subordinated notes offering by Fortis Inc.?
Fortis Inc. has announced a $750 million offering of 5.100% fixed-to-fixed rate subordinated notes, which are set to mature on December 4, 2055.
Who are the agents handling the offering?
The offering is facilitated by several agents, with BMO Nesbitt Burns Inc. and Scotia Capital Inc. serving as co-leaders, along with other reputable financial institutions.
How will Fortis utilize the proceeds from the offering?
The net proceeds are earmarked for reducing borrowings under its revolving corporate credit facility and for general corporate purposes, enhancing Fortis's financial health.
What is the significance of this offering for Fortis Inc.?
This offering reflects Fortis's proactive approach to managing its finances and supporting its growth strategy, positioning the company more favorably for future endeavors.
Where can I find more information about Fortis?
For more information, stakeholders can visit Fortis Inc.'s official website and access their continuous disclosure materials as needed.
