By Lisa Kerner
Charlotte, N.C., March 28 - Fortis Inc. priced a private placement of $500 million of senior notes to be issued to U.S.-based institutional investors.
The notes will be issued in multiple tranches with terms to maturity ranging from five years to 30 years and coupon rates ranging from 2.92% to 5.03%, according to a company news release.
The weighted average term to maturity is about 11 years, and the weighted average coupon rate is 3.85%.
Fortis plans to issue $213 million of notes on June 30 and $287 million of notes on Sept. 15.
Wells Fargo Securities, LLC and Morgan Stanley & Co. LLC are joint placement agents for the sale.
Proceeds will be used to refinance debt, including the $150 million of 5.74% senior notes maturing on Oct. 30, 2014 and C$125 million of 5.56% debentures of a subsidiary maturing on Sept. 15, 2014, and for general corporate purposes, including the repayment of U.S.-dollar drawings on the company's committed credit facility.
The notes will not be registered under the Securities Act of 1933 as amended, nor will they be registered under any state securities laws.
Fortis is a St. John's, Newfoundland-based investor-owned gas and electric distributor.
| Issuer: | Fortis Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturities: | Five to 30 years
|
| Coupons: | 2.92% to 5.03%
|
| Agents: | Wells Fargo Securities, LLC and Morgan Stanley & Co. LLC
|
| Pricing date: | March 28
|
| Settlement dates: | June 30 for $213 million, Sept. 15 for $287 million
|
| Distribution: | Private placement
|
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