Fortis Inc. Announces Pricing of Senior Unsecured Debentures



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/
    

    ST. JOHN'S, June 25 /CNW/ - Fortis Inc. ("Fortis" or the "Corporation")
(TSX:FTS) announced today that it has priced its previously announced offering
(the "Offering") of senior unsecured debentures of the Corporation (the
"Debentures"). The Corporation filed a preliminary short form prospectus with
securities regulatory authorities in each of the provinces of Canada on June
23, 2009. The Offering is being made to the public through a syndicate of
agents co-led by BMO Nesbitt Burns Inc. and CIBC World Markets Inc., and
including RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities
Inc., HSBC Securities (Canada) Inc. and National Bank Financial Inc.
(collectively, the "Agents").
    The Corporation has today entered into an agency agreement relating to
the sale of the Debentures by the syndicate of Agents establishing the terms
of the Offering. The Corporation will issue up to the principal amount of
$200,000,000 Debentures resulting in gross proceeds to the Corporation of
$199,868,000, assuming that all Debentures issuable pursuant to the Offering
are purchased by investors. Interest on the Debentures will be payable at the
fixed rate of 6.51% payable in equal instalments semi-annually in arrears on
January 4 and July 4 of each year, commencing January 4, 2010. The Debentures
will mature on July 4, 2039.
    The net proceeds of the Offering will be used to repay in full the
indebtedness outstanding under the Corporation's credit facility and for
general corporate purposes.
    The Offering is subject to the receipt of all necessary regulatory
approvals. The Debentures will not be listed on any stock exchange.
    The Debentures have not been registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.
This media release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any offer, solicitation or sale of the
securities in any state in which such offer, solicitation or sale would be
unlawful.

    Fortis is the largest investor-owned distribution utility in Canada. With
total assets approaching $12 billion and annual revenues totalling $3.9
billion, the Corporation serves more than 2,000,000 gas and electricity
customers. Its regulated holdings include electric distribution utilities in
five Canadian provinces and three Caribbean countries and a natural gas
utility in British Columbia. Fortis owns non-regulated generation assets
across Canada and in Belize and Upper New York State. It also owns hotels and
commercial real estate in Canada. The Corporation's common shares are listed
on the Toronto Stock Exchange and trade under the symbol FTS. Additional
information can be accessed at www.fortisinc.com or www.sedar.com.

    Fortis includes forward-looking information in this media release within
the meaning of applicable securities laws in Canada ("forward-looking
information"). The purpose of the forward-looking information is to provide
management's expectations regarding the Corporation's future growth, results
of operations, performance, business prospects and opportunities and may not
be appropriate for other purposes. All forward-looking information is given
pursuant to the "safe harbour" provisions of applicable Canadian securities
legislation. The words "anticipates", "believes", "could", "estimates",
"expects", "forecasts", "intends", "may", "might", "plans", "projects",
"schedule", "should", "will", "would" and similar expressions are often
intended to identify forward-looking information, although not all
forward-looking information contains these identifying words. The
forward-looking information reflects management's current beliefs and is based
on information currently available to the Corporation's management. The
forward-looking information in this media release includes the expected amount
of gross proceeds from the issuance of the Debentures assuming all Debentures
issuable pursuant to the Offering are sold by the Agents, the Corporation's
expected use of the net proceeds from the Offering and the expected closing
date of the Offering. The forecasts and projections that make up the
forward-looking information are based on assumptions which include, but are
not limited to: the receipt of applicable regulatory approvals and requested
rate orders; no significant operational disruptions or environmental liability
due to a catastrophic event or environmental upset caused by severe weather,
other acts of nature or other major event; the continued ability to maintain
the gas and electricity systems to ensure their continued performance; no
significant decline in capital spending in 2009; no severe and prolonged
downturn in economic conditions; sufficient liquidity and capital resources;
the continuation of regulator-approved mechanisms to flow through the
commodity cost of natural gas and energy supply costs in customer rates; the
continued ability to hedge exposures to fluctuations in interest rates,
foreign exchange rates and natural gas commodity prices; no significant
variability in interest rates; no significant counterparty defaults; the
continued competitiveness of natural gas pricing when compared with
electricity and other alternative sources of energy; the continued
availability of natural gas supply; the continued ability to fund defined
benefit pension plans; the absence of significant changes in government energy
plans and environmental laws that may materially affect the operations and
cash flows of the Corporation and its subsidiaries; maintenance of adequate
insurance coverage; the ability to obtain and maintain licences and permits;
retention of existing service areas; no material decrease in market energy
sales prices; favourable relations with First Nations; favourable labour
relations; and sufficient human resources to deliver service and execute the
capital program. The forward-looking information is subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from historical results or results anticipated by the
forward-looking information. Factors which could cause results or events to
differ from current expectations include, but are not limited to: regulatory
risk; operating and maintenance risks; economic conditions; capital resources
and liquidity risk; weather and seasonality; an ultimate resolution of the
expropriation of the assets of the Exploits River Hydro Partnership that
differs from what is currently expected by management; commodity price risk;
derivative financial instruments and hedging; interest rate risk; counterparty
risk; competitiveness of natural gas; natural gas supply; defined benefit
pension plan performance and funding requirements; risks related to the
development of the Terasen Gas (Vancouver Island) Inc. franchise; the
Government of British Columbia's Energy Plan; environmental risks; insurance
coverage risk; an unexpected outcome of legal proceedings currently against
the Corporation; licences and permits; loss of service area; market energy
sales prices; transition to International Financial Reporting Standards;
changes in tax legislation; First Nations' lands; labour relations; and human
resources. For additional information with respect to the Corporation's risk
factors and risk factors relating to the Debentures, reference should be made
to the Corporation's preliminary short form prospectus dated June 23, 2009 and
the continuous disclosure materials filed from time to time with Canadian
securities regulatory authorities and to the heading "Business Risk
Management" in the Management Discussion and Analysis for the three months
ended March 31, 2009 and for the year ended December 31, 2008.
    All forward-looking information in this media release is qualified in its
entirety by the above cautionary statements and, except as required by law,
the Corporation undertakes no obligation to revise or update any
forward-looking information as a result of new information, future events or
otherwise.

    
    Not for distribution to U.S. news wire services or dissemination in the
    United States.
    




For further information:

For further information: Mr. Barry Perry, Vice President, Finance and
Chief Financial Officer, Fortis Inc., Phone: (709) 737-2800, Fax: (709)
737-5307

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FORTIS INC.

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