Fortis closes $750-million note offering

Executive Summary

• Fortis Inc. has closed a private placement offering of $750 million in aggregate principal amount of fixed-to-fixed-rate subordinated notes.
• The notes carry a coupon rate of 5.100% and mature on December 4, 2055.
• The offering was structured through a syndicate of agents co-led by BMO Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc., with multiple co-managers.

Key Details

• Transaction Type: Private placement of fixed-to-fixed-rate subordinated notes.
• Aggregate Principal Amount: $750 million.
• Interest Rate: 5.100% fixed-to-fixed rate.
• Maturity Date: December 4, 2055.
• Legal Basis: Exemptions from prospectus requirements under applicable Canadian securities laws.
• Lead Agents: BMO Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc.
• Co-Managers: TD Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., Wells Fargo Securities Canada Ltd., Merrill Lynch Canada Inc., Morgan Stanley Canada Ltd., MUFG Securities (Canada) Ltd., and Cedar Leaf Capital Inc.