Emera Inc. is offering C$300 million worth of preferred shares on a bought-deal basis to a syndicate of underwriters in Canada.
The offering covers 12,000,000 cumulative minimum rate reset first preferred shares, series H for C$25 per share. The shares will have an initial dividend rate of 4.90%.
Underwriters have the option to purchase up to an additional 2,000,000 shares at the same price. If the option is exercised in full, the company expects gross proceeds of C$350 million.
Emera plans to use proceeds for general corporate purposes.
Holders of the shares will be entitled to receive fixed cumulative preferential cash dividends at an annual rate of C$1.225 per share, payable quarterly, when declared by Emera's board. The shares will yield 4.90% per annum for the annual initial period ending Aug. 15, 2023.
The first dividend, if declared, will be 25.507 cents per share and be payable on Aug. 15.
The holders will also have the right to convert their shares into cumulative floating rate first preferred shares, series I, subject to certain conditions, on Aug. 15, 2023, and on Aug. 15 of every fifth year thereafter.
The offering is subject to the receipt of all necessary regulatory and stock exchange approvals.
The syndicate of underwriters is led by Scotiabank, CIBC Capital Markets, RBC Capital Markets and TD Securities Inc.