New Issue: FortisAlberta sells C$125 million 3.98% 40-year debentures at 149 bps over benchmark

By Cristal Cody

Prospect News, Oct. 18 - FortisAlberta Inc. (Baa1/A-/DBRS: A) sold an upsized C$125 million of 3.98% 40-year medium-term note debentures at 99.94 to yield 3.983% on Thursday, a source close to the deal said.

The debentures priced on top of guidance at a spread of 149 basis points over the Government of Canada benchmark. The deal was upsized from C$100 million.

The deal was managed by a syndicate that included Scotia Capital Inc., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Capital Markets LLC, TD Securities Inc., HSBC Capital (Canada) Inc., National Bank Financial Inc. and Casgrain & Co. Ltd.

Calgary, Alta.-based FortisAlberta, a subsidiary of Fortis Inc., is an electricity distribution company for the Alberta area.

Issuer:	FortisAlberta Inc.
Amount:	C$125 million
Maturity:	Oct. 23, 2052
Securities:	Medium-term note debentures
Bookrunners:	Scotia Capital Inc., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Capital Markets LLC, TD Securities Inc., HSBC Capital (Canada) Inc., National Bank Financial Inc. and Casgrain & Co. Ltd.
Coupon:	3.98%
Price:	99.94
Yield:	3.983%
Spread:	149 bps over Government of Canada benchmark
Pricing date:	Oct. 18
Settlement date:	Oct. 23
Ratings:	Moody's: Baa1
	Standard & Poor's: A-
	DBRS: A
Distribution:	Canada
Price talk:	149 bps, plus or minus 2 bps

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