FTS.PR.H Starts off Strong

Fortis Inc. has announced:

that it has closed its public offering (the “Offering”) of Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shares, Series H (the “Series H First Preference Shares”) underwritten by a syndicate of underwriters led by TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc. and CIBC World Markets Inc. Fortis issued 10,000,000 Series H First Preference Shares at a price of $25.00 per share for gross proceeds to the Corporation of $250,000,000.

The issue is a FixedReset, 4.25%+125 145, announced January 11.

The issue had a strong first day, trading 573,694 shares in a range of 24.95-20 before closing at 25.06-15, 100×1.

Vital Statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2040-01-26
Maturity Price : 25.01
Evaluated at bid price : 25.06
Bid-YTW : 3.91 %

FTS.PR.H is tracked by HIMIPref™, but is relegated to the Scraps subindex on credit concerns.
The net proceeds of the Offering will be used to repay borrowings under the Corporation’s committed credit facility and to inject additional equity into a regulated subsidiary.

The Series H First Preference Shares will commence trading on the Toronto Stock Exchange on January 26, 2010 under the symbol FTS.PR.H.

2 Responses to “FTS.PR.H Starts off Strong”

  1. FletcherLynn says:


    Looks like it reset at 2.5%, does GOC at 1.05 plus 145 make sense? I think there is a typo above stating +125, while prefinfo matches the prospectus.

    series I looks like it would exist at 2.1% is enough people choose that option. Any thoughts from readers on which way to lean? Thanks.

  2. jiHymas says:

    Yes, that makes sense – I’ve posted an announcement.

    Sorry about the typo – I’ve fixed it!

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