Fortis Inc.

Fortis Inc.

September 06, 2007 16:57 ET

Fortis Inc. Announces Private Placement of US$200 Million Senior Unsecured Notes

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Sept. 6, 2007) - Not for distribution to U.S. news wire services or dissemination in the United States.

Fortis Inc. (TSX:FTS) announced today that it has closed its private placement of US$200 million in Senior Unsecured Notes (the "Notes") to US-based institutional investors. The Notes were issued today in a single tranche with a 30-year term maturing September 1, 2037 at a coupon rate of 6.6%.

Net proceeds from the sale of the Notes will be used to refinance existing debt associated with the Terasen Inc. acquisition and for general corporate purposes. The Notes will rank pari passu in right of payment with all current and future senior indebtedness of Fortis.

The Notes will not be registered under the Securities Act of 1933 (the "Securities Act") as amended, nor will they be registered under any state securities laws. Unless so registered, the Notes may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

JP Morgan was lead placement agent for the sale of the Notes.

Fortis Inc., the largest investor-owned distribution utility in Canada, serves almost 2,000,000 gas and electric customers and has approximately $10 billion of assets. Its regulated holdings include a natural gas utility in British Columbia, Canada and electric utilities in five Canadian provinces and three Caribbean countries. Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at or

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

Contact Information

  • Fortis Inc.
    Barry V. Perry
    Vice President Finance and Chief Financial Officer
    709-737-5307 (FAX)