North American utility giant, Fortis (NYSE:FTS) Inc. successfully completed its private placement offering of senior unsecured notes valued at $500 million on Wednesday. The notes, with a maturity date set for November 8, 2033, were managed by a syndicate that included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., and Scotia Capital Inc., among others.
The transaction was led by the company's investor relations VP, Ms. Stephanie Amaimo. Regulatory limitations under the U.S. Securities Act of 1933 restrict these notes from being sold in the U.S. without registration or an exemption.
Fortis Inc., with operations spanning five provinces in Canada, ten states in the U.S., and three Caribbean countries, reported total assets of $66 billion as of September 30, 2023. The company's earnings for the previous year stood at $11 billion.
The utility company employs around 9,200 people and trades its shares on the Toronto Stock Exchange under the symbol FTS. Communications and Government Relations are overseen by VP Ms. Karen McCarthy. The corporation released a short-form base shelf prospectus on November 21, 2022, followed by a prospectus supplement detailing the notes offering on September 19, 2023.
InvestingPro Insights
InvestingPro's real-time data and tips provide a deeper understanding of Fortis Inc.'s financial position and performance. With a market cap of 19.7B USD and a P/E ratio of 18.02 as of the last twelve months of Q3 2023, the company continues to have a significant presence in the market.
InvestingPro Tips highlights that Fortis operates with a significant debt burden, yet it has consistently increased its earnings per share and has maintained its dividend payments for 36 consecutive years. This suggests a stable return for investors despite the company's debt. Additionally, the company's stock generally trades with low price volatility, indicating a less risky investment.
Moreover, InvestingPro's data shows a revenue growth of 12.83% in the last twelve months of Q3 2023, which aligns with the company's consistent increase in earnings per share. However, it's worth noting that 7 analysts have revised their earnings downwards for the upcoming period.
In total, InvestingPro offers 11 tips for Fortis Inc., providing a comprehensive analysis for potential investors. For further insights and tips, consider exploring InvestingPro's product offerings.
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