Final Payment on Fortis Debentures

 

Fortis Inc. announced that holders of its 4% convertible unsecured subordinated debentures represented by instalment receipts  that the final instalment payment of $667 per $1,000 principal amount of Debentures is due by October 27, 2014.  Payment must be submitted by holders through their broker, investment advisor or other intermediary using the electronic payment system maintained by CDS Clearing and Depository Services Inc. ("CDS").

Brokers, investment advisors or other intermediaries may have a payment processing deadline which is earlier than the Final Instalment Date.  Holders who have not yet done so should contact their broker, investment advisor or other intermediary to ensure that the balance owed in respect of their Debentures is paid on time.
 
On the Final Instalment Date holders will receive accrued and unpaid interest of $6.2637 per $1,000 principal amount of Debentures and on the following day, holders of Debentures who have paid the final instalment on or before the Final Instalment Date will also receive a make‑whole payment of $8.1473 per $1,000 principal amount of Debentures, representing the interest that would have accrued from the day following the Final Instalment Date to and including January 9, 2015.

Holders who have paid the final instalment on the Final Instalment Date have the right to convert their Debentures into Fortis common shares at a conversion price of $30.72 per Common Share on the Final Instalment Date, or at any time thereafter prior to redemption or maturity. The election to convert the Debentures to Common Shares must also be made by a holder through their broker, investment advisor or other intermediary using the electronic system maintained by CDS. Common Shares will be delivered by Fortis in respect of such conversion on the day following the Final Instalment Date.
 
On the day following the Final Instalment Date, the interest rate payable on the Debentures will fall to an annual rate of 0% and interest will cease to accrue on the Debentures.  Fortis expects the Instalment Receipts to be delisted from the Toronto Stock Exchange on or about the Final Instalment Date.  The Debentures are not and will not be listed on the TSX.