Fortis Inc. Announces Pricing of Fixed-to-Fixed Rate Subordinated Notes

Executive Summary

• Fortis Inc. has priced a private placement offering of $750 million aggregate principal amount of 5.100% fixed-to-fixed rate subordinated notes due December 4, 2055.
• The offering is being made on a best-efforts basis through a syndicate of agents co-led by BMO Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc.
• Net proceeds are expected to be used to reduce borrowings under the Corporation's revolving corporate credit facility and for general corporate purposes, with an expected closing date of September 4, 2025.

Key Details

• Instrument: 5.100% fixed-to-fixed rate subordinated notes due December 4, 2055.
• Aggregate Principal Amount: $750 million.
• Offering Type: Private placement pursuant to exemptions from prospectus requirements of applicable Canadian securities laws.
• Basis: Best efforts basis.
• Joint Bookrunners: 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 Limited, MUFG Securities (Canada), Ltd., and Cedar Leaf Capital Inc.
• Use of Proceeds: Reduction of borrowings under the Corporation's revolving corporate credit facility and for general corporate purposes.
• Expected Closing Date: September 4, 2025.
• Regulatory Status: Notes have not been and will not be registered under the U.S. Securities Act of 1933; not offered or sold in the United States.
• Prospectus Context: Constitutes a "designated news release" for the purposes of the Corporation's prospectus supplement dated December 9, 2024, to Fortis' short form base shelf prospectus dated December 9, 2024.