Fortis Completes $601M Equity Financing

Fortis Inc. (“Fortis”) closed the sale of 18,500,000 subscription receipts for $32.50 per subscription receipt for aggregate gross proceeds of $601,250,000. The net proceeds of the offering will be used, subsequent to receipt of all required approvals and satisfaction of closing conditions, to finance a portion of the purchase price for the acquisition of CH Energy Group, Inc. by Fortis, which is expected to close by the end of the first quarter of 2013. The offering was completed on a bought deal basis and was underwritten by a syndicate of underwriters co-led by CIBC World Markets Inc., Scotia Capital Inc. and TD Securities Inc.

Fortis owns and operates non-regulated generation assets across Canada, Belize and Upper New York State. It also owns hotels across Canada and commercial office and retail space primarily in Atlantic Canada. Fortis shares are listed on the Toronto Stock Exchange and trade under the symbol “FTS.”

Fortis was represented in-house by Ron McCabe, Vice President, General Counsel & Corporate Secretary with assistance from a team at Davies Ward Phillips & Vineberg LLP comprising Jim Reid, Richard Fridman and Michael Jemczyk (securities), and Raj Juneja (tax) in Toronto and Scott Tayne (securities) in New York. John Green, QC, of McInnes Cooper acted as Newfoundland and Labrador counsel to Fortis.

The underwriters were represented by Joel Binder, Michael Burkett, Paul Rakowski and Cara Cornacchia (securities) and John Lorito (tax) of Stikeman Elliott LLP.