December 11, 2013 - 2:03 PM
ST. JOHN'S, N.L. - Fortis Inc. (TSX:FTS) says it has signed a deal to acquire Arizona-based UNS Energy Corp. for US$4.3 billion including the assumption of about US$1.8 billion of debt.
The Canadian utility company has agreed to pay US$60.25 per share in cash for the UNS Energy, which serves about 654,000 electricity and gas customers.
UNS Energy shares closed down 46 cents at US$45.84 on the New York Stock Exchange on Wednesday.
The deal is expected to close by the end of next year, subject to shareholder, regulatory and government approvals.
To help pay for the deal, Fortis says it will raise $1.8 billion through the sale of convertible unsecured subordinated debentures.
The company said it has agreed to sell $1.594 billion in the debentures on a bought deal basis to the public and another $206 million in a private placement to institutional investors. The debentures will mature on Jan. 9, 2024, and pay interest at an annual rate of four per cent.
Fortis operates utilities serving more than 2.4 million customers in Canada and in New York State and the Caribbean.
Shares in the company closed down 14 cents at C$31.19 on the Toronto Stock Exchange on Wednesday.
News from © The Canadian Press, 2013