STOCK TITAN

Fortis Inc. Provides Standby Commitment to Caribbean Utilities Company, Ltd.

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Fortis Inc. (TSX/NYSE: FTS) announced that its subsidiary, Fortis Energy Caribbean Inc. (FECI), will provide a standby commitment for a rights offering by Caribbean Utilities Company, (CUC) (TSX: CUP.U). CUC plans to issue up to 3,822,298 Class A Ordinary Shares, representing 10% of its current outstanding shares. FECI will acquire a minimum of 2,220,422 CUC shares at US$13.41 per share, totaling US$29,775,859.02. The standby commitment allows FECI to acquire up to 1,601,876 additional shares at the same price.

If no other subscribers participate, FECI could acquire all 3,822,298 CUC shares for US$51,257,016.18. Fortis currently owns about 58% of CUC shares and could increase its ownership to 62% if there are no other subscribers. The rights offering, expected to close around November 4, 2024, aims to finance alternative energy projects and system upgrades for CUC.

Fortis Inc. (TSX/NYSE: FTS) ha annunciato che la sua controllata, Fortis Energy Caribbean Inc. (FECI), fornirà un impegno standby per un'offerta di diritti da parte della Caribbean Utilities Company (CUC) (TSX: CUP.U). CUC prevede di emettere fino a 3.822.298 azioni ordinarie di Classe A, che rappresentano il 10% delle sue azioni attualmente in circolazione. FECI acquisirà un minimo di 2.220.422 azioni CUC a 13,41 USD per azione, per un totale di 29.775.859,02 USD. L'impegno standby consente a FECI di acquisire fino a 1.601.876 azioni aggiuntive allo stesso prezzo.

Se nessun altro sottoscrittore parteciperà, FECI potrebbe acquisire tutte le 3.822.298 azioni CUC per 51.257.016,18 USD. Fortis possiede attualmente circa il 58% delle azioni CUC e potrebbe aumentare la propria partecipazione al 62% se non ci sono altri sottoscrittori. L'offerta di diritti, che si prevede si chiuda intorno al 4 novembre 2024, ha come obiettivo il finanziamento di progetti di energia alternativa e aggiornamenti del sistema per CUC.

Fortis Inc. (TSX/NYSE: FTS) anunció que su filial, Fortis Energy Caribbean Inc. (FECI), proporcionará un compromiso de standby para una oferta de derechos de Caribbean Utilities Company (CUC) (TSX: CUP.U). CUC planea emitir hasta 3,822,298 acciones ordinarias Clase A, lo que representa el 10% de sus acciones actualmente en circulación. FECI adquirirá un mínimo de 2,220,422 acciones CUC a 13.41 USD por acción, sumando un total de 29,775,859.02 USD. El compromiso de standby permite a FECI adquirir hasta 1,601,876 acciones adicionales al mismo precio.

Si no participan otros suscriptores, FECI podría adquirir todas las 3,822,298 acciones CUC por 51,257,016.18 USD. Fortis posee actualmente aproximadamente el 58% de las acciones CUC y podría aumentar su participación al 62% si no hay otros suscriptores. Se espera que la oferta de derechos se cierre alrededor del 4 de noviembre de 2024, con el objetivo de financiar proyectos de energía alternativa y mejoras en el sistema para CUC.

포르티스 Inc. (TSX/NYSE: FTS)는 자회사인 포르티스 에너지 카리브 Inc. (FECI)가 카리브 유틸리티스 컴퍼니 (CUC) (TSX: CUP.U)의 권리 제공을 위한 대기 약속을 제공할 것이라고 발표했습니다. CUC는 현재 발행된 주식의 10%를 나타내는 최대 3,822,298 클래스 A 보통주를 발행할 계획입니다. FECI는 CUC 주식을 최소 2,220,422주 13.41 USD per 주식에 인수할 것입니다, 총 29,775,859.02 USD입니다. 대기 약속은 FECI가 동일한 가격으로 최대 1,601,876주를 추가로 인수할 수 있게 합니다.

다른 구독자가 참여하지 않으면, FECI는 51,257,016.18 USD에 모든 3,822,298 CUC 주식을 인수할 수 있습니다. 포르티스는 현재 CUC 주식의 약 58%를 보유하고 있으며, 다른 구독자가 없으면 소유 비율을 62%로 늘릴 수 있습니다. 권리 제공은 2024년 11월 4일경에 마감될 예정이며, CUC를 위한 대체 에너지 프로젝트 및 시스템 업그레이드 자금을 조달하는 데 목적이 있습니다.

Fortis Inc. (TSX/NYSE: FTS) a annoncé que sa filiale, Fortis Energy Caribbean Inc. (FECI), fournira un engagement de standby pour une offre de droits de la Caribbean Utilities Company (CUC) (TSX: CUP.U). CUC prévoit d'émettre jusqu'à 3 822 298 actions ordinaires de Classe A, représentant 10 % de ses actions actuellement en circulation. FECI acquerra un minimum de 2 220 422 actions CUC à 13,41 USD par action, totalisant 29 775 859,02 USD. L'engagement de standby permet à FECI d'acquérir jusqu'à 1 601 876 actions supplémentaires au même prix.

Si aucun autre souscripteur ne participe, FECI pourrait acquérir toutes les 3 822 298 actions CUC pour 51 257 016,18 USD. Fortis possède actuellement environ 58 % des actions CUC et pourrait augmenter sa participation à 62 % s'il n'y a pas d'autres souscripteurs. L'offre de droits, qui devrait se clôturer vers le 4 novembre 2024, vise à financer des projets d'énergie alternative et des mises à niveau du système pour CUC.

Fortis Inc. (TSX/NYSE: FTS) gab bekannt, dass ihre Tochtergesellschaft, Fortis Energy Caribbean Inc. (FECI), eine Standby-Verpflichtung für ein Bezugsangebot der Caribbean Utilities Company (CUC) (TSX: CUP.U) übernehmen wird. CUC plant die Emission von bis zu 3.822.298 Klasse A Stammaktien, was 10% der derzeit ausstehenden Aktien entspricht. FECI wird mindestens 2.220.422 CUC-Aktien zu je 13,41 USD erwerben, was insgesamt 29.775.859,02 USD ergibt. Die Standby-Verpflichtung erlaubt es FECI, bis zu 1.601.876 zusätzliche Aktien zum gleichen Preis zu erwerben.

Wenn keine weiteren Zeichner teilnehmen, könnte FECI alle 3.822.298 CUC-Aktien für 51.257.016,18 USD erwerben. Fortis besitzt derzeit etwa 58% der CUC-Aktien und könnte seinen Anteil auf 62% erhöhen, wenn es keine weiteren Zeichner gibt. Das Bezugsangebot, das voraussichtlich um den 4. November 2024 abgeschlossen wird, zielt darauf ab, alternative Energieprojekte und Systemupgrades für CUC zu finanzieren.

Positive
  • Potential increase in Fortis' ownership of CUC from 58% to 62% if no other subscribers participate
  • Opportunity for Fortis to invest up to US$51,257,016.18 in CUC shares
  • Support for CUC's capital needs for alternative energy projects and system upgrades
Negative
  • Significant capital outlay required for the standby commitment
  • Potential dilution of other CUC shareholders if Fortis increases its ownership percentage

ST. JOHN'S, Newfoundland and Labrador, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) announced today that its wholly owned subsidiary Fortis Energy Caribbean Inc. ("FECI") has agreed to provide a standby commitment (the "Standby Commitment") for a rights offering (the "Rights Offering") by Caribbean Utilities Company, Ltd. ("CUC") (TSX: CUP.U). Pursuant to the Rights Offering, CUC will issue up to an aggregate of 3,822,298 or 10% of its currently issued and outstanding Class A Ordinary Shares (the "CUC Shares"). FECI will exercise the rights issued to it in the Rights Offering and will acquire a minimum of 2,220,422 CUC Shares at a price of US$13.41 per CUC Share for aggregate consideration of US$29,775,859.02.

Subject to certain customary terms and conditions, FECI may acquire up to 1,601,876 additional CUC Shares at the same price pursuant to the Standby Commitment. If there are no other subscribers in the Rights Offering, FECI will acquire a total of 3,822,298 CUC Shares through the Rights Offering and Standby Commitment for aggregate consideration of US$51,257,016.18. Based on the average daily rate of exchange quoted by the Bank of Canada on September 19, 2024, the consideration in Canadian dollars is C$18.19 per CUC Share or aggregate consideration of C$69,527,600.62 should there be no other subscribers in the Rights Offering.

Prior to the Rights Offering, Fortis indirectly owned 22,204,229 CUC Shares representing approximately 58% of the CUC Shares. On closing of the Rights Offering, which is expected to occur on or about November 4, 2024, Fortis will beneficially own approximately 58% of the CUC Shares if the Rights Offering is fully subscribed or approximately 62% of the CUC Shares if there are no other subscribers in the Rights Offering.

The purpose of the Rights Offering is to provide CUC with capital to be used to finance alternative energy projects, ongoing additions and upgrades to its generation, transmission and distribution systems and for general corporate purposes.

Fortis will review its holdings in CUC Shares from time to time and may acquire additional securities or dispose of securities of CUC, in either case, in the open market, by private agreement or otherwise, depending on numerous factors, including without limitation, the availability of securities of CUC, economic conditions, market conditions and other business and investment opportunities available to Fortis.

An early warning report will be filed by Fortis in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact Ms. Karen McCarthy, Vice President, Communications & Government Relations at media@fortisinc.com.

About Fortis

Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of $12 billion and total assets of $69 billion as at June 30, 2024. The Corporation’s 9,600 employees serve utility customers in five Canadian provinces, ten U.S. states and three Caribbean countries. Fortis’ shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca or www.sec.gov.

Fortis’ head office is located at Fortis Place, Suite 1100, 5 Springdale Street, St. John’s, Newfoundland and Labrador A1B 3T2.

CUC’s head office is located at 457 North Sound Road, Grand Cayman KY1-1101, Cayman Islands.

Forward-Looking Information

Fortis includes forward-looking information in this media release within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information”). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. Wherever possible, words such as “anticipates”, “believes”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “might”, “plans”, “projects”, “schedules”, “should”, “target”, “will”, “would”, and the negative of these terms, and other similar terminology or expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management’s current beliefs and is based on information currently available to the Corporation’s management and includes statements relating to the expectation that FECI will acquire CUC Shares as a result of the Rights Offering and Standby Commitment. Although Fortis believes that the forward-looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect the Corporation, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information included in this media release is given as of the date of this media release and Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/b8a555e1-5288-4201-854a-5b31f7929548

Additional Information
  
For more information, please contact:
  
Investor Enquiries:Media Enquiries:
Ms. Stephanie AmaimoMs. Karen McCarthy
Vice President, Investor RelationsVice President, Communications & Government Relations
Fortis Inc.Fortis Inc.
248.946.3572709.737.5323
investorrelations@fortisinc.commedia@fortisinc.com

FAQ

What is the purpose of the rights offering announced by Fortis Inc. (FTS) for Caribbean Utilities Company?

The purpose of the rights offering is to provide Caribbean Utilities Company (CUC) with capital to finance alternative energy projects, ongoing additions and upgrades to its generation, transmission and distribution systems, and for general corporate purposes.

How many CUC shares could Fortis Inc. (FTS) acquire through the rights offering and standby commitment?

Fortis Inc. could acquire up to 3,822,298 CUC shares through the rights offering and standby commitment if there are no other subscribers, representing approximately 10% of CUC's currently issued and outstanding Class A Ordinary Shares.

What is the price per share that Fortis Inc. (FTS) will pay for CUC shares in the rights offering?

Fortis Inc. will pay US$13.41 per CUC share in the rights offering, which is equivalent to approximately C$18.19 per share based on the exchange rate quoted on September 19, 2024.

When is the expected closing date for the rights offering announced by Fortis Inc. (FTS)?

The rights offering is expected to close on or about November 4, 2024.

Fortis Inc. Common Shares

NYSE:FTS

FTS Rankings

FTS Latest News

FTS Stock Data

21.86B
495.20M
0.04%
57.56%
1.46%
Utilities - Regulated Electric
Utilities
Link
United States of America
Saint John's