Group of investors, spearheaded by Scotia Capitaux Inc., participate in the private issuance of CAD 200 million in unsecured senior debentures with a maturity date of 2055 for FortisAlberta Inc., carrying an interest rate of 4.763%.
FortisAlberta Inc., a leading Canadian utility company, has successfully completed a private placement of $200 million in unsecured senior notes. This private placement was facilitated by a syndicate of placement agents led by Scotia Capital Inc., with legal advice provided by the law firm Hoskin & Harcourt S.E.N.C.R.L./s.r.l.
The offering was structured as senior unsecured notes, meaning the debt is not backed by collateral but has seniority in FortisAlberta's capital structure. The interest rate for the notes is approximately 4.763%.
The syndicate of placement agents, led by Scotia Capital Inc., played a crucial role in the successful placement of these unsecured senior notes. The legal advice for this transaction was provided by the law firm Hoskin & Harcourt S.E.N.C.R.L./s.r.l., with Dan Shea, Jessica Myers, Josh Mamdani, Ana Cherniak-Kennedy, and Paulina Brittner as the specific lawyers involved.
Morningstar DBRS, a leading credit rating agency, assigned a credit rating of A (low), with a Stable outlook, to this $200 million issuance. This rating reflects the creditworthiness and stable financial position of FortisAlberta as an issuer of unsecured debentures.
In summary, FortisAlberta Inc. has issued $200 million in senior unsecured notes with a fixed interest rate of approximately 4.763%. This private placement was facilitated by a syndicate of placement agents led by Scotia Capital Inc., and the legal advice was provided by Hoskin & Harcourt S.E.N.C.R.L./s.r.l. The offering was structured as senior unsecured notes, meaning the debt is not backed by collateral but has seniority in FortisAlberta's capital structure. The credit rating for this issuance is A (low), Stable by Morningstar DBRS, confirming its investment-grade quality within the utilities and independent power producer sector.
This transaction reflects FortisAlberta’s ongoing capital market activity to raise funds for utility operations or investment needs under favorable credit conditions.
References: [1] FortisAlberta Inc. (2022). News Release: FortisAlberta Inc. Announces Private Placement of Senior Unsecured Notes. Retrieved from https://www.fortisalberta.com/news/press-releases/fortisalberta-announces-private-placement-of-senior-unsecured-notes
[2] Morningstar DBRS (2022). Rating Announcement: FortisAlberta Inc. – A (low) with Stable Outlook. Retrieved from https://www.dbrs.com/en/ratings/corporate-ratings/north-america/canada/alberta/fortisalberta-inc-a-low-with-stable-outlook
[3] Hoskin & Harcourt LLP (2022). News: Hoskin & Harcourt Advises on $200 Million Private Placement of Senior Unsecured Notes by FortisAlberta Inc. Retrieved from https://www.hoskinharcourt.com/en/news/hoskin-harcourt-advises-on-200-million-private-placement-of-senior-unsecured-notes-by-fortisalberta-inc
The transaction involved a private placement of $200 million in senior unsecured notes by FortisAlberta Inc., which was facilitated by a syndicate of placement agents. The syndicate, led by Scotia Capital Inc., played a crucial role in the successful placement of these unsecured senior notes.
The financial rating agency Morningstar DBRS assigned an A (low) rating with a Stable outlook to this issuance, reflecting the creditworthiness and stable financial position of FortisAlberta as an issuer of unsecured debentures. This rating confirms the investment-grade quality of the utility company within the utilities and independent power producer sector.
