New stock arbitrage— Fortis Inc.
Fortis is a leader in the North American regulated electric and gas utility industry with 2018 revenue of C$8.4 billion and total assets of approximately C$53 billion as at September 30, 2019. The Corporation’s 8,800 employees serve utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries.
Fortis Inc. announced on Monday that it has entered into an agreement with a syndicate of underwriters led by Scotia Capital Inc., CIBC Capital Markets and RBC Capital Markets, pursuant to which the Underwriters have agreed to purchase from Fortis, on a “bought deal” basis, and sell to the public, 11,510,000 common shares of Fortis at a price of C$52.15 per Common Share, resulting in gross proceeds for Fortis of C$600 million.
Closing is expected to occur on or about December 3, 2019. The net proceeds of the Offerings will be used to fund the Corporation’s capital plan, repay indebtedness of Fortis and for general corporate purposes.