Canadian Utilities arranges $175-million offering

Executive Summary

• Canadian Utilities Ltd. has entered into an agreement to issue 7 million Series JJ preferred shares at $25 per share, raising $175 million in gross proceeds.
• The company has granted underwriters an overallotment option to purchase an additional 1.05 million shares, potentially increasing total gross proceeds to $201.25 million.
• Proceeds will be utilized for capital expenditures and general corporate purposes.

Key Details

• Issuer: Canadian Utilities Ltd.
• Security Type: 5.60% cumulative redeemable second preferred shares, Series JJ.
• Underwriters: Syndicate co-led by BMO Capital Markets and RBC Capital Markets, including TD Securities Inc., Scotiabank, CIBC Capital Markets, National Bank Financial Inc., and ATB Capital Markets.
• Base Offering Size: 7,000,000 shares.
• Offering Price: $25.00 per share.
• Base Gross Proceeds: $175,000,000.
• Overallotment Option: Option to purchase up to 1,050,000 additional shares (15% overbase).
• Maximum Gross Proceeds (with Overallotment): $201,250,000.
• Use of Proceeds: Capital expenditures and other general corporate purposes.
• Dividend Terms: Fixed cumulative preferential cash dividends payable quarterly, as and when declared by the board of directors.
• Dividend Rate: Annual rate of $1.40 per share (5.60% yield).
• Redemption Terms:
  • Callable on or after March 1, 2031.
  • Redemption Price Schedule:
    • March 1, 2031 – Feb 28, 2032: $26.00 per share.
    • March 1, 2032 – Feb 28, 2033: $25.75 per share.
    • March 1, 2033 – Feb 28, 2034: $25.50 per share.
    • March 1, 2034 – Feb 28, 2035: $25.25 per share.
    • On or after March 1, 2035: $25.00 per share.
  • Redemption includes all accrued and unpaid dividends up to, but excluding, the date fixed for redemption.
• Distribution Method: Short form prospectus in all provinces of Canada.
• Expected Closing Date: On or about November 27, 2025.