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Fortis tender for 3.055% notes priced, oversubscribed at early date
By Wendy Van Sickle
Columbus, Ohio, April 17 – Fortis Inc. took in tenders totaling $1,051,270,000 by the early deadline of its offer to purchase up to $400 million principal amount of its $1.5 billion outstanding 3.055% notes due 2026, according to a company news release.
The company also announced that it will pay a total consideration of $965.43 per $1,000 of notes for tenders accepted by the early deadline, which was 5 p.m. ET on April 17.
Because the offer was oversubscribed at the early deadline, tendered notes will be accepted on a pro rata basis.
The tender offer will expire at 11:59 p.m. ET on May 1, but no additional tenders will be accepted.
The total consideration includes an early tender premium of $30 per $1,000 principal amount and was determined by reference to a fixed spread of 100 basis points over the yield based on the bid-side price of the 2.625% U.S. Treasury security due Feb. 15, 2029 calculated at 2 p.m. ET on April 17.
Fortis will pay accrued interest up to but excluding the applicable settlement date, which is slated for April 18.
The tender offer was made on April 4 and was conditioned on the consummation of the company’s sale of its 51% interest in the Waneta Expansion Hydroelectric Project in British Columbia under an agreement with Columbia Power Corp. and Columbia Basin Trust. That condition has been met, the company noted in Wednesday’s release.
The dealer manager is Goldman Sachs & Co. LLC (800 828-3182 or 212 902-6351). The information agent and tender agent is D.F. King & Co., Inc. (800 820-2415, 212 269-5550 or fortis@dfking.com).
Fortis is a regulated electric and gas utility based in St. John's, Newfoundland and Labrador.
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