{"id":26322,"date":"2014-09-19T22:02:25","date_gmt":"2014-09-20T03:02:25","guid":{"rendered":"http:\/\/prefblog.com\/?p=26322"},"modified":"2014-09-19T22:02:25","modified_gmt":"2014-09-20T03:02:25","slug":"fts-pr-m-firm-on-enormous-volume","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26322","title":{"rendered":"FTS.PR.M Firm On Enormous Volume"},"content":{"rendered":"

Fortis Inc. has announced<\/a>:<\/p>\n

that it has closed its public offering (the “Offering”) of Cumulative Redeemable Fixed Rate Reset First Preference Shares, Series M (“Series M First Preference Shares”) underwritten by a syndicate of underwriters led by Scotiabank and RBC Capital Markets. Fortis issued 24,000,000 Series M First Preference Shares at a price of $25.00 per share for aggregate gross proceeds to the Corporation of $600,000,000.<\/p>\n

The net proceeds of the Offering will be used to repay a portion of the amounts borrowed by Fortis under its acquisition credit facility in connection with the acquisition of UNS Energy Corporation completed on August 15, 2014.<\/p>\n

The Series M First Preference Shares were offered by way of a short form prospectus of Fortis dated September 11, 2014 and will commence trading today on the Toronto Stock Exchange under the symbol FTS.PR.M.<\/p>\n

Fortis is the largest investor-owned distribution utility in Canada, with total assets approaching $25 billion and fiscal 2013 revenue exceeding $4 billion. Its regulated utilities account for approximately 93% of total assets and serve more than 3 million customers across Canada and in the United States and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York. The Corporation’s non-utility investments are comprised of hotels and commercial real estate in Canada.<\/p>\n

Additional information about the Corporation can be accessed at www.fortisinc.com<\/a> or www.sedar.com<\/a>.<\/p><\/blockquote>\n

FTS.PR.M is a FixedReset, 4.10%+248, announced and supersized 2014-9-3<\/a>. The issue will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.<\/p>\n

The issue traded a massive 2,113,711 shares today (consolidated exchanges) in a range of 24.98-12 before closing at 25.10-11, 9×150. Vital statistics are:<\/p>\n

\n\n\n
FTS.PR.M<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-09-19
\nMaturity Price : 23.18
\nEvaluated at bid price : 25.10
\nBid-YTW : 4.02 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Implied Volatility analysis suggests that FTS.PR.M is cheap relative to other Fortis FixedResets, with a theoretical price of 25.97 … but remember that this conclusion is not necessarily applicable with respect to other issuers! It could just as easily be that the lower-spread FTS issues are expensive relative to the universe!<\/p>\n

\"ImpVol_FTS_140919\"<\/a>
Click for Big<\/i>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Fortis Inc. has announced: that it has closed its public offering (the “Offering”) of Cumulative Redeemable Fixed Rate Reset First Preference Shares, Series M (“Series M First Preference Shares”) underwritten by a syndicate of underwriters …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-26322","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26322"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26322\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}