By Rebecca Melvin
New York, May 29 - Emera Inc. priced C$250 million of convertible rate-reset first preferred shares at a price of C$25.00 per share on a bought-deal basis to yield 4.1% for the first six years, according to a news release.
The dividend will be reset on Aug. 15, 2018 and every five years thereafter at a rate equal to the five-year Government of Canada bond yield plus 265 basis points.
The Regulation S deal is being brought by a syndicate of underwriters led by Scotiabank, RBC Capital Markets and TD Securities Inc.
Proceeds will be used for general corporate purposes.
Emera can call the series C preferreds after six years on Aug. 15, 2018 and on Aug. 15 of every fifth year thereafter.
Holders have the right to convert their preferreds into cumulative floating-rate series D first preferred shares on Aug. 15, 2018 and on Aug. 15 of every fifth year thereafter.
Holders of the series D preferreds will receive quarterly floating-rate cumulative dividends when declared at the 90-day Government of Canada treasury bill rate plus 265 bps.
Holders of the series C preferreds will be entitled to receive fixed cumulative dividends at an annual rate of C$1.0250 per share, yielding 4.1% for the initial six-year period ending on Aug. 15, 2018.
The first of such dividends, if declared, will be payable on Aug. 15 and will be C$0.1938 per series C preferred share based on the June 7 anticipated closing of the offering.
The series C preferreds will be offered to the public in Canada by way of a supplemented short-form prospectus.
Emera is a holding company based in Halifax, N.S., that provides diversified energy and services, including electric generation, transmission and distribution through its subsidiaries.
| Issuer: | Emera Inc.
|
| Amount: | C$250 million
|
| Maturity: | Perpetual
|
| Securities: | Convertible rate-reset series C first preferred shares
|
| Bookrunners: | Scotiabank, RBC Capital Markets and TD Securities Inc.
|
| Dividend: | 4.1% for first six years, then reset every five years at five-year Government of Canada bond yield plus 265 bps
|
| Price: | Par of C$25
|
| Yield: | 4.1% for first six years
|
| Conversion option: | Into cumulative floating-rate series D first preferred shares on Aug. 15, 2018 and every fifth year thereafter
|
| Call feature: | On Aug. 15, 2018 and every fifth year thereafter
|
| Pricing date: | May 29
|
| Settlement date: | June 7
|
| Distribution: | Regulation S, Canada
|
| Stock symbol: | Toronto: EMA
|
| Stock price: | C$33.11 at close May 28
|
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