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Fortis Inc. Provides Standby Commitment to Caribbean Utilities Company, Ltd.
FTSFortis(FTS) GlobeNewswire News Room·2024-09-23 10:00

Transaction Details - Fortis Inc's subsidiary, Fortis Energy Caribbean Inc (FECI), has agreed to provide a standby commitment for a rights offering by Caribbean Utilities Company, Ltd (CUC) [1] - CUC will issue up to 3,822,298 Class A Ordinary Shares, representing 10% of its currently issued and outstanding shares [1] - FECI will acquire a minimum of 2,220,422 CUC Shares at US13.41pershare,totalingUS13.41 per share, totaling US29,775,859.02 [1] - FECI may acquire up to 1,601,876 additional CUC Shares at the same price, potentially totaling 3,822,298 shares for US51,257,016.18[2]−TheconsiderationinCanadiandollarsisC51,257,016.18 [2] - The consideration in Canadian dollars is C18.19 per share or C69,527,600.62iftherearenoothersubscribers[2]OwnershipImpact−Priortotherightsoffering,Fortisindirectlyowned22,204,229CUCShares,representingapproximately5869,527,600.62 if there are no other subscribers [2] Ownership Impact - Prior to the rights offering, Fortis indirectly owned 22,204,229 CUC Shares, representing approximately 58% of CUC Shares [3] - Post-closing, Fortis will own approximately 58% of CUC Shares if fully subscribed, or approximately 62% if there are no other subscribers [3] Purpose of the Rights Offering - The rights offering aims to provide CUC with capital for alternative energy projects, upgrades to generation, transmission, and distribution systems, and general corporate purposes [4] Fortis Overview - Fortis is a 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 of June 30, 2024 [7] - The company serves utility customers in five Canadian provinces, ten U S states, and three Caribbean countries [7] Additional Information - Fortis will file an early warning report in accordance with applicable securities laws [6] - The company's head office is located in St John's, Newfoundland and Labrador, while CUC's head office is in Grand Cayman, Cayman Islands [8]