HALIFAX, NOVA SCOTIA--(Marketwire - May 29, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Emera (TSX:EMA)(TSX:EMA.PR.A) announced today 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). The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements
This news release does not constitute an offer to sell or the solicitation of any offer to buy, nor will there be any sale of these securities, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.
Forward Looking Information
This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).
Emera Inc. is an energy and services company with $7.0 billion in assets and 2011 revenues of $2.1 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 interests throughout northeastern North America, in three Caribbean countries and in California. More than 80% of the company's earnings come from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA and EMA.PR.A. Additional information can be accessed at www.emera.com, www.sedar.com, or on www.sec.gov.