Emera subsidiary completes $750 million notes offering

HALIFAX - Emera Incorporated (TSX/NYSE:EMA), a $14.5 billion market cap utility company, announced Thursday that its subsidiary EUSHI Finance, Inc. has completed the sale of $750 million in U.S. dollar denominated 6.25% fixed-to-fixed reset rate junior subordinated notes due 2056.

The notes are fully guaranteed by Emera and Emera US Holdings Inc. (EUSHI), according to a press release statement. EUSHI Finance is a direct, wholly-owned subsidiary of EUSHI, which is itself a direct and indirect wholly-owned subsidiary of Emera.

Several financial institutions served as joint book-running managers for the offering, including Wells Fargo Securities, J.P. Morgan Securities, Morgan Stanley, and RBC Capital Markets.

The company stated that the notes will not be listed on any securities exchange, and there are no plans to include them on any quotation system. Emera indicated it intends to use the net proceeds from the sale for general corporate purposes, including repayment of existing debt.

The notes have not been qualified by prospectus for public distribution under Canadian provincial or territorial securities laws and are not being offered or sold in Canada except under exemptions from prospectus requirements.

Emera is a North American energy services provider headquartered in Halifax, Nova Scotia, with regulated electric and natural gas utility investments across the United States, Canada, and the Caribbean. The company serves approximately 2.6 million customers and employs around 7,600 people.

In other recent news, Emera Incorporated has announced the automatic conversion of all its outstanding Cumulative Floating Rate First Preferred Shares, Series B into Cumulative 5-Year Rate Reset First Preferred Shares, Series A, effective August 15, 2025. The decision was made based on shareholder elections, with fewer than 1,000,000 Series B Shares expected to remain after the conversion date. Additionally, Emera has disclosed the dividend rates for its preferred shares, with Series A Shares set to pay 4.951% per annum from August 15, 2025, through August 14, 2030. This rate is derived from the Government of Canada bond yield plus 1.84%.

In another development, BofA Securities has initiated coverage on Emera with a Buy rating and a price target of $49.00. This coverage follows Emera’s recent approval to trade on the New York Stock Exchange under the ticker symbol EMA. These developments highlight the company’s strategic financial maneuvers and investor interest.

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