October 02, 2015 08:26 AM Eastern Daylight Time
HALIFAX, Nova Scotia–(BUSINESS WIRE)–Emera Inc. (“Emera” or the “Company”) (TSX: EMA) announced today that in connection with the recently completed sale (the “Offering”) on September 28, 2015 by the Company’s direct wholly owned subsidiary, Emera Holdings NS Company, of $1,900,000,000 aggregate principal amount of 4.00% convertible unsecured subordinated debentures of the Company represented by instalment receipts (the “Convertible Debentures”), the over-allotment option (the “Over-Allotment Option”) granted to the underwriters to purchase up to an additional $285,000,000 aggregate principal amount of Convertible Debentures (the “Additional Convertible Debentures”) at a purchase price per Additional Convertible Debenture equal to the Offering Price (defined below), has been exercised in full, generating additional gross proceeds of $285,000,000 (assuming payment of the Final Instalment (defined below)).
The sale of the Additional Convertible Debentures today brings the aggregate gross proceeds of the Offering, including the Over-Allotment Option, to $2,185,000,000 (assuming payment of the Final Instalment).
“The exercise in full of this $285,000,000 over-allotment option, in combination with the $1.9 billion offering that closed earlier this week, fully addresses Emera’s common equity financing needs for the acquisition of TECO Energy”, said Scott Balfour, Executive Vice President and CFO of Emera Inc. “Emera is pleased with the confidence and strong support the market has shown for this important financing.”
The Additional Convertible Debentures were sold on an instalment basis at a price of $1,000 per Convertible Debenture (the “Offering Price”), of which $333 was paid on closing of the sale and the remaining $667 (the “Final Instalment”) is payable on a date (“Final Instalment Date”) to be fixed following satisfaction of all conditions precedent to the closing of the Company’s recently announced acquisition of TECO Energy, Inc. (NYSE:TE) (“TECO Energy”). Prior to the Final Instalment Date, the Convertible Debentures sold in connection with the Offering and the Additional Convertible Debentures will be represented by instalment receipts and will be listed and posted for trading on the Toronto Stock Exchange under the symbol “EMA.IR”.
The Offering, including the Over-Allotment Option, was underwritten by a syndicate of underwriters co-led by Scotiabank, RBC Capital Markets, and JP Morgan, and including CIBC, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Barclays Capital Canada Inc. and Credit Suisse Securities (Canada) Inc.
Emera Inc. is geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $10 billion in assets and 2014 revenues of $2.97 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera’s strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has investments throughout northeastern North America, and in four Caribbean countries. Emera continues to target having 75-85% of its adjusted earnings come from rate-regulated businesses. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, and EMA.PR.F, and the instalment receipts are listed and trade under the symbol EMA.IR. Additional Information can be accessed at www.emera.com or at www.sedar.com.