Fortis Inc. has announced:
that it has closed its public offering (the “Offering”) of Cumulative Redeemable Fixed Rate Reset First Preference Shares, Series K (“Series K First Preference Shares”) underwritten by a syndicate of underwriters led by TD Securities Inc., CIBC World Markets Inc. and Scotia Capital Inc. Fortis issued 10,000,000 Series K First Preference Shares at a price of $25.00 per share for aggregate gross proceeds to the Corporation of $250,000,000.
The net proceeds of the offering will be used to repay a portion of borrowings under the Corporation’s $1 billion committed corporate credit facility, including amounts borrowed in connection with the redemption of the Corporation’s First Preference Shares, Series C, the construction of the Waneta Expansion and equity injections into certain of the Corporation’s subsidiaries, and for general corporate purposes.
The Series K First Preference Shares were offered by way of prospectus supplement under the short form base shelf prospectus of Fortis dated May 10, 2012 and will commence trading today on the Toronto Stock Exchange under the symbol FTS.PR.K.
The Board of Directors of Fortis has declared a dividend of $0.1233 per share on the Series K First Preference Shares, payable on September 1, 2013 to the holders of record at the close of business on August 16, 2013. Fortis has designated the preference share dividend as an eligible dividend for federal and provincial dividend tax credit purposes.
FTS.PR.K is a FixedReset, 4.00%+205, announced July 9.
The issue will be tracked by HIMIPref™ and assigned to the FixedReset subindex.
FTS.PR.K traded 334,167 shares today in a range of 24.90-15 before closing at 25.03-10, 8×10. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2043-07-18
Maturity Price : 23.14
Evaluated at bid price : 25.03
Bid-YTW : 3.71 %