KELOWNA, BRITISH COLUMBIA--(Marketwire - May 28, 2009) - FortisBC Inc. ("FortisBC" or the "Company"), an indirect wholly owned subsidiary of Fortis Inc. (TSX:FTS), announced today that it has priced an issue of $105 million medium term note debentures (the "Debentures") under its shelf prospectus. The issue is expected to close on June 2, 2009. The syndicate for the issue was led by Scotia Capital Inc. and includes CIBC World Markets Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc. and RBC Dominion Securities Inc.
FortisBC plans to use the net proceeds for general corporate purposes, including repayment of existing indebtedness and financing the Corporation's capital expenditure program and working capital requirements.
The Debentures will bear interest at a rate of 6.10% per annum, payable semi-annually, and will mature on June 2, 2039.
The Debentures have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in the United States, nor shall there be any offer, solicitation, or sale of the Debentures in any state in which such offer, solicitation, or sale would be unlawful.
About FortisBC Inc.
FortisBC Inc. is an integrated regulated electric utility based in Kelowna, British Columbia. Focused on the safe delivery of reliable and cost-effective electricity, FortisBC serves approximately 158,000 customers directly and indirectly through wholesale utilities in the southern interior of B.C. FortisBC owns and operates four regulated hydroelectric generating plants and approximately 7,000 kilometers of transmission and distribution power lines. FortisBC employs over 500 people in British Columbia and is an indirect wholly owned subsidiary of Fortis Inc., the largest investor-owned distribution utility in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com.
FortisBC may include forward-looking statements in this release which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify the forward-looking statements. The forward looking statements in this release include, but are not limited to, FortisBC's expectation of using the net proceeds from the MTN Debenture issue for general corporate purposes, including repayment of existing indebtedness and financing the Corporation's capital expenditure program and working capital requirements. These statements reflect management's current beliefs and are based on information currently available to the Company's management. By their very nature, forward-looking statements are based on underlying factors or assumptions, which include, but are not limited to, receipt of applicable regulatory approvals and requested rate orders; continued electricity demand; absence of adverse weather conditions, natural disasters and equipment breakdown; no significant decline in interest rates; the ability to arrange sufficient and cost effective financing; the ability to maintain and renew collective bargaining agreements on acceptable terms; absence of environmental damage; the First Nations' settlement process does not adversely affect FortisBC; the adequacy of FortisBC's existing insurance arrangements; that counterparties do not default on power supply contracts; no weather related demand loss; ability to maintain and obtain applicable permits; climate change does not reduce water flows; and, no material adverse increase in employee future benefit costs. These forward-looking statements are subject to inherent risks and uncertainties surrounding future expectations generally that could cause actual results to differ materially from historical results or results anticipated by these forward-looking statements. Such risk factors or assumptions include, but are not limited to, regulatory approval and rate orders risk; electricity demand risk; weather and natural disasters; equipment breakdown; operating and maintenance risk; interest rates risk; capital resources risk; labour relations risk; environmental matters risk; First Nations' land matters risk; underinsured and uninsured losses; power supply contracts risk; weather related demand loss; permits risk; climate change risk; and, employee future benefits risk. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to FortisBC's continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities including the section entitled "Business Risk Management" in FortisBC's Management Discussion & Analysis for the year ended December 31, 2008. Except as required by law, FortisBC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
VP, Finance & Chief Financial Officer
(866) 853-3084 (FAX)
Manager, Corporate Communications
(866) 789-6928 (FAX)