FortisBC Inc.

FortisBC Inc.

October 27, 2005 09:05 ET

FortisBC Inc. Announces $100 Million Debenture Offering

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2005) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF US SECURITIES LAW.

FortisBC Inc. ("FortisBC" or the "Company"), an indirect wholly owned subsidiary of Fortis Inc. (TSX:FTS), announced today that it has entered into an agreement with Scotia Capital Inc., on behalf of a syndicate of underwriters, pursuant to which they have agreed to purchase from FortisBC and resell $100 million of senior unsecured debentures (the "Debentures"). The Company will file a preliminary short form prospectus with securities regulatory authorities in all Canadian provinces in connection with the sale of the Debentures. The offering is subject to customary securities regulatory approvals and closing conditions and is expected to close on or about November 10, 2005.

FortisBC plans to use the net proceeds of the offering to repay certain existing indebtedness under its credit facilities, which was incurred primarily to fund capital expenditures. Any proceeds remaining thereafter will be used for capital expenditures and other corporate purposes.

The Debentures have been rated BBB(high) (stable trend) by Dominion Bond Rating Service Limited and have been provisionally rated Baa3 (stable) by Moody's Investors Service. The Debentures will bear interest at an interest rate of 5.60% per annum payable semi-annually in arrears on November 9 and May 9 in each year commencing May 9, 2006 and will mature on November 9, 2035. The Debentures are unsecured obligations of the Company.

The Debentures have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in the United States, nor shall there be any offer, solicitation, or sale of the Debentures in any state in which such offer, solicitation, or sale would be unlawful.

FortisBC is an integrated utility operating in the southern interior of British Columbia, serving over 146,000 customers directly and indirectly. Fortis Inc. is a diversified, international electric utility holding company, with assets of approximately $4.1 billion and annual revenues of approximately $1.2 billion. The Common Shares, Series C First Preference Shares and Series E First Preference Shares of Fortis Inc. are traded on the Toronto Stock Exchange under symbols FTS, FTS.PR.C and FTS.PR.E, respectively. Fortis Inc. information can be accessed at www.fortisinc.com.

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

Contact Information

  • FortisBC Inc.
    Michele Leeners
    Vice President, Finance & Chief Financial Officer
    (250) 869-8013
    (866) 853-3084 (FAX)
    or
    FortisBC Inc.
    Natika Sunstrum
    Manager, Corporate Communications
    (250) 718-1718
    (866) 648-9724 (FAX)