New Issue: EMA FixedReset 4.10%+265

Emera Inc. has announced:

that it will issue ten million Cumulative Rate Reset First Preferred Shares, Series C (the “Series C Preferred Shares”) at a price of $25.00 per share, for aggregate gross proceeds of $250 million on a bought deal basis to a syndicate of underwriters in Canada led by Scotiabank, RBC Capital Markets and TD Securities Inc.

The holders of the Series C Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.0250 per share, payable quarterly, as and when declared by the board of directors of Emera, yielding 4.10 per cent per annum, for the initial six-year period ending on August 15, 2018. The first of such dividends, if declared, shall be payable on August 15, 2012, and shall be $0.1938 per Series C Preferred Share, based on the anticipated closing of the offering on June 7, 2012. The dividend rate will be reset on August 15, 2018 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.65 per cent. The Series C Preferred Shares are redeemable by Emera, at its option, on August 15, 2018 and on August 15th of every fifth year thereafter.

The holders of Series C Preferred Shares will have the right to convert their shares into Cumulative Floating Rate First Preferred Shares, Series D (the “Series D Preferred Shares”), subject to certain conditions, on August 15, 2018 and on August 15 of every fifth year thereafter. The holders of the Series D Preferred Shares will be entitled to receive quarterly floating rate cumulative dividends, as and when declared by the board of directors of Emera, at a rate equal to the sum of the then 90-day Government of Canada treasury bill rate plus 2.65 per cent.

The net proceeds of the offering will be used for general corporate purposes.

The Series C Preferred Shares will be offered to the public in Canada by way of prospectus supplement to an amended and restated short form base shelf prospectus dated February 18, 2011 (amending and restating the short form base shelf prospectus of Emera dated May 19, 2010).

3 Responses to “New Issue: EMA FixedReset 4.10%+265”

  1. […] is a FixedReset, 4.10%+265, announced May 29. The issue will be tracked by HIMIPref™, but assigned to the Scraps index on credit […]

  2. […] was issued as a FixedReset, 4.10%+265, that commenced trading 2012-6-7 after being announced 2012-5-29. After notice of extension in 2018 the rate was reset to 4.721%; I recommended against conversion; […]

  3. […] was issued as a FixedReset, 4.10%+265, that commenced trading 2012-6-7 after being announced 2012-5-29. After notice of extension in 2018 the rate was reset to 4.721%; I recommended against conversion; […]

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