Fortis Inc. Share Conversion Announcements
Recently, Fortis Inc. (TSX: FTS) shared significant news regarding the conversion of its preference shares, marking an optimistic phase of growth for the corporation. This announcement details the transitions between the Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shares, Series H and the Cumulative Redeemable Floating Rate First Preference Shares, Series I. This exciting shift showcases the company's strategic approach and reflects its robust position in the marketplace, aiming to enhance shareholder value.
Details of the Share Conversions
In this latest announcement, Fortis disclosed that a total of 11,298 Series H Shares were converted into Series I Shares, while 248,830 Series I Shares were shifted back to Series H Shares. This two-way conversion reflects a total of just over 7.9 million Series H Shares against 2.1 million Series I Shares currently available to investors. Both series continue to be actively listed on the Toronto Stock Exchange, complete with their respective ticker symbols FTS.PR.H and FTS.PR.I, ensuring transparency and accessibility for investors.
Understanding the Dividend Structure
The Series H Shares are designed to offer a stable and reliable income stream, with a fixed annual dividend rate of 4.183 percent, paid out quarterly. Starting June 1, 2025, these dividends provide shareholders with a predictable income, dependent on the decisions made by Fortis’ Board of Directors. Conversely, the Series I Shares introduce a floating dividend arrangement, which will initially settle at an annual rate of 4.103 percent. This floating rate, reset quarterly based on government benchmarks, allows for potential adjustments in response to market conditions. Such a structure offers a unique opportunity for investors to capitalize on fluctuations in interest rates, catering to varied investment strategies.
About Fortis Inc.
With a solid reputation in the North American regulated utility sector, Fortis stands out as a leader in the electric and gas industry. The company boasts impressive financials, with a reported revenue of $12 billion in 2024 and substantial assets totaling $75 billion as of March 31, 2025. Fortis operates in an extensive geographical area, providing service to utilities across five Canadian provinces, ten U.S. states, and three Caribbean territories. This broad operational footprint accentuates Fortis’ commitment to delivering reliable energy solutions while fostering sustainable growth.
The Future of Investment with Fortis
As Fortis continues to solidify its position in the market, it remains focused on generating shareholder value and driving innovative energy solutions. The adjustments made to its series of shares offer investors an advantageous opportunity to capitalize on the company's stable outlook and future potential. With investor and media relations managed by dedicated professionals, Fortis demonstrates its commitment to transparency and stakeholder engagement.
Frequently Asked Questions
What are the Series H and Series I Shares?
The Series H Shares and Series I Shares are types of preference shares issued by Fortis Inc., offering fixed and floating dividend options, respectively.
How can I convert my Series H Shares to Series I Shares?
Shareholders can convert their Series H Shares to Series I Shares on a one-for-one basis, as per the terms announced by the company.
What is the dividend rate on Series H Shares?
Series H Shares will pay a fixed dividend rate of 4.183 percent, paid quarterly starting from June 1, 2025.
Will Series I Shares pay a fixed or floating dividend?
Series I Shares offer a floating dividend, which will initially be set at an annual rate of 4.103 percent, and reset quarterly based on market conditions.
Where can I find more information about Fortis?
More information about Fortis Inc. can be found on its official website and financial reporting platforms like SEDAR+.
