Emera Announces Expiration and Settlement of Exchange Offer
January 17 2017 - 3:03PM
Business Wire
Emera US Finance LP (the “Issuer”), a limited partnership
financing subsidiary, wholly owned directly and indirectly by Emera
Incorporated (“Emera”) today announced that its offer to exchange
(the “Exchange Offer”) USD $3.25 billion aggregate principal amount
of multiple series of its outstanding senior unsecured notes (the
“Old U.S. Notes”), as set forth below, for the New U.S. Notes in an
equal principal amount (the “New U.S. Notes”) that have been
registered under the United States Securities Act of 1933, as
amended (the “Securities Act”), expired at midnight, New York City
Time, on, January 13, 2017.
On June 16, 2016, the Issuer completed the issuance of the Old
U.S. Notes in a private placement. The Old U.S. Notes were sold
only to “qualified institutional buyers” under Rule 144A of the
Securities Act and to non-U.S. persons under Regulation S of the
Securities Act and were not offered for sale in Canada. The Old
U.S. Notes were guaranteed by Emera and Emera US Holdings Inc., a
wholly owned Emera subsidiary. The Old U.S. Notes were as
follows:
USD $500 million 2.150% Notes due 2019
USD $750 million 2.700% Notes due 2021
USD $750 million 3.550% Notes due 2026
USD $1.25 billion 4.750% Notes due 2046
In connection with the initial issuance of the Old U.S. Notes,
the Issuer entered into a registration rights agreement with the
initial purchasers of the Old U.S. Notes in which it undertook to
offer to exchange the Old U.S. Notes for new notes registered under
the Securities Act.
Pursuant to an effective registration statement on Form
F-10/Form S-4, filed with the United States Securities and Exchange
Commission (the “SEC”), holders of the Old U.S. Notes were able to
exchange them for New U.S. Notes. The terms of the New U.S. Notes
issued in the Exchange Offer are identical in all material respects
to the terms of the Old U.S. Notes, except that the New U.S. Notes
have been registered under the Securities Act, and will not bear
any legend restricting transfer. The registration rights and
additional interest provisions relating to the Old U.S. Notes do
not apply to the New U.S. Notes.
The Issuer has been advised that tenders with respect to USD
$3.25 billion aggregate principal amount of the Old U.S. Notes, out
of a total of USD $3.25 billion aggregate principal amount
outstanding, were received prior to the expiration of the Exchange
Offer.
The Issuer expects to issue an equal principal amount of the New
U.S. Notes of each series in exchange for the Old U.S. Notes of
each series that were validly tendered. Settlement of the Exchange
Offer is expected to occur on or about January 17, 2017, subject to
certain customary conditions.
This announcement is neither an offer to buy nor a solicitation
of an offer to sell any of the Issuer or Emera’s securities. The
Exchange Offer is being made only pursuant to the exchange offer
documents, which have been filed with the SEC, and include the
prospectus and letter of transmittal that are being distributed to
holders of the Old U.S. Notes. The completion of the Exchange Offer
remains subject to the terms and conditions stated in the exchange
offer documents. D.F. King & Co., Inc., is acting as the
exchange agent for the Exchange Offer and can be contacted at, 48
Wall Street - 22nd Floor, New York, New York 10005, attention:
Krystal Scrudato, banks and brokers call collect: (212) 269-5550,
all others call toll-free (800) 817-5468.
Forward Looking Information
This news release contains forward-looking information within
the meaning of applicable securities laws. By its nature,
forward-looking information requires Emera to make assumptions and
is subject to inherent risks and uncertainties. These statements
reflect Emera management’s current beliefs and are based on
information currently available to Emera management. There is a
risk that predictions, forecasts, conclusions and projections that
constitute forward-looking information will not prove to be
accurate, that Emera’s assumptions may not be correct and that
actual results may differ materially from such forward-looking
information. Additional detailed information about these
assumptions, risks and uncertainties is included in Emera’s
securities regulatory filings, including under the heading
“Business Risks and Risk Management” in Emera’s annual Management’s
Discussion and Analysis, and under the heading “Principal Risks and
Uncertainties” in the notes to Emera’s annual and interim financial
statements, which can be found on SEDAR at www.sedar.com. Except as
required by law, Emera disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
About Emera
Emera is a geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately Cdn$28
billion in assets and 2015 pro-forma revenues of Cdn$6.3 billion.
The company invests in electricity generation, transmission and
distribution, gas transmission and distribution, and utility energy
services with a strategic focus on transformation from high carbon
to low carbon energy sources. Emera has investments throughout
North America, and in four Caribbean countries. Emera continues to
target having 75-85% of its adjusted earnings come from
rate-regulated businesses. Emera’s 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. Depositary receipts representing common shares of Emera
are listed on the Barbados Stock Exchange under the symbol
EMABDR.
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version on businesswire.com: http://www.businesswire.com/news/home/20170117006406/en/
EmeraMark Kane, 813-228-1772Vice President, Investor
Relationsmark.kane@emera.comorNeera Ritcey, 902-428-6059Manager,
Investor Relationsneera.ritcey@emera.com
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