Fortis Completes $325M Private Placement

Fortis Inc. completed a private placement to institutional investors in the US of US$325 million in senior unsecured notes. 

The notes were issued in two tranches: US$285 million of 10-year notes maturing October 1, 2023, at a coupon rate of 3.84 per cent and US$40 million of 30-year notes maturing October 1, 2043, at a coupon rate of 5.08 per cent. The net proceeds from the offering were used to repay a portion of Fortis's US dollar-denominated committed credit facility borrowings incurred to finance its acquisition of CH Energy Group, Inc. and for other general corporate purposes.

Fortis is the largest investor-owned gas and electric distribution utility in Canada, with total assets exceeding $17 billion and fiscal 2012 revenue totalling approximately $3.7 billion.

Fortis was represented in-house by Ron McCabe, vice president, general counsel and corporate secretary. Davies Ward Phillips & Vineberg LLP acted as counsel for Fortis with a team of Carol Pennycook and Robin Upshall (banking and corporate) and Siobhan Monaghan and Raj Juneja (tax) in Toronto; Scott Tayne and Paul Watkins (banking and corporate) and Scott Semer (tax) in New York.  John Green of McInnes Cooper acted as Newfoundland and Labrador counsel to Fortis.

Greenberg Traurig, LLP, in Chicago, Illinois, acted as special counsel to the purchasers with a team of Charles Kolin, Lea Rosenthal and Lindsay Lefteroff.


Raj Juneja John M. Green K. A. Siobhan Monaghan Ronald W. McCabe Robin Upshall Carol D. Pennycook


Davies Ward Phillips & Vineberg LLP McInnes Cooper Greenberg Traurig LLP