Settlement is next Monday. This is holding-company paper
Fortis Inc. (TSX: FTS, NYSE: FTS) announced September 9 it priced a public offering of US$500 million of 6.625 percent fixed-to-fixed rate junior subordinated notes and US$500 million of 6.875 percent notes, both due March 30, 2057. Closing is September 21, 2026, subject to customary closing conditions. That is six days from today.
The 6.625 percent notes keep that coupon into March 30, 2032, then reset to the five-year Treasury rate plus 2.016 percent, with a floor at 6.625 percent. The 6.875 percent notes reset after March 30, 2037 to five-year Treasuries plus 2.042 percent, floored at 6.875 percent. Both priced at par.
Fortis said it expects to use net proceeds to repay indebtedness and for general corporate purposes. This is holding-company hybrid paper against a regulated utility book. It does not authorize a new generating station and it does not change Tilbury Phase 1B at FortisBC or the five-year consolidated capital plan the company has outlined for rate-base growth.