Fortis Inc. Raises $1 Billion in Subordinated Notes Offering
News related to:Fortis Inc · 1 min read
Fortis Inc., a leading diversified utility company, announced the successful pricing of a US$1 billion public offering of fixed-to-fixed rate junior subordinated notes on September 9, 2026. The notes, consisting of US$500 million each at interest rates of 6.625% and 6.875%, respectively, are due to mature on March 30, 2057. This move is aimed at refinancing maturing debt and supporting the company’s broader financial strategy.
The offering was managed through a syndicate of underwriters co-led by Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, and BofA Securities, Inc. Other underwriters included BMO Capital Markets Corp., CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, National Bank of Canada Financial Inc., Academy Securities, Inc., and Desjardins Securities Inc. The issuance is part of an ongoing effort by Fortis to strengthen its capital structure and ensure financial flexibility.
Fortis, headquartered in St. John's, Newfoundland and Labrador, has a diverse portfolio spanning five Canadian provinces, ten U.S. states, and the Cayman Islands. The company's 2025 revenue stands at $12 billion, with total assets valued at $79 billion as of June 30, 2026. This latest financial maneuver underscores the company’s commitment to robust financial management and its strategic position in the utility sector.
The notes were issued under a prospectus supplement to a short form base shelf prospectus filed on December 9, 2024, and are subject to customary closing conditions. Fortis expects the Offering to close on September 21, 2026. The net proceeds from this transaction will be used to repay existing debt and support general corporate purposes. Fortis has stated that the offering is not being made in any state or jurisdiction where such an offering would be unlawful, as required by applicable securities laws.
With this issuance, Fortis continues its focus on maintaining a strong capital structure and ensuring it is well-positioned to meet future challenges and opportunities in the utility industry.