ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - Nov. 7, 2006) - Fortis Inc. ("Fortis") (TSX:FTS) announced that it has issued, by way of private placement, US$40,000,000 aggregate principal amount of unsecured subordinated convertible debentures of Fortis (the "Debentures"). The Debentures bear interest at the annual rate of 5.5 per cent, payable semi-annually on January 31 and July 31 in each year, and mature on November 7, 2016. The Debentures may be redeemed by Fortis at par at any time on or after November 7, 2011 and are convertible into Fortis common shares at the option of the holder at any time prior to their maturity at a 30 per cent premium to current market prices. The Debentures are subordinated to all other indebtedness of Fortis, other than subordinated indebtedness ranking equally with the Debentures.
Fortis is a diversified, international electric utility holding company with assets of approximately $5 billion and annual revenues of more than $1.4 billion. Fortis has holdings in regulated electric distribution utilities in Alberta, British Columbia, Newfoundland, Ontario, Prince Edward Island, Belize, Grand Cayman, Cayman Islands and Turks and Caicos Islands. It has non-regulated generation operations in British Columbia, Ontario, Newfoundland, upper New York State and Belize. Fortis also has investments in real estate and hotels through its wholly owned non-utility subsidiary.
The Common Shares, First Preference Shares, Series C; First Preference Shares, Series E and First Preference Shares, Series F of Fortis are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C, FTS.PR.E and FTS.PR.F, respectively. Fortis information can be accessed at www.fortisinc.com.
Fortis may include forward-looking statements in this material. By their very nature, forward-looking statements are based on underlying assumptions and are subject to inherent risks and uncertainties surrounding future expectations generally. Such events include, but are not limited to, general economic, market and business conditions, regulatory developments, weather and competition. Fortis cautions readers that should certain events or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. The Corporation 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:
Barry V. Perry
Vice President Finance & Chief Financial Officer