Fortis Inc. (TSX/NYSE: FTS), a diversified North American regulated utility, announced on September 9, 2026 that it has priced a public offering of US$1 billion in junior subordinated notes across two tranches, both maturing March 30, 2057. The offering comprises two equal series carrying coupon rates of 6.625% and 6.875% respectively. Fortis intends to use the net proceeds to repay maturing indebtedness and for general corporate purposes, a detail investors in regulated utility debt may find significant given the corporation's scale.

Key Points

  • Fortis Inc. (TSX/NYSE: FTS) is a St. John's, Newfoundland-based regulated electric and gas utility holding company
  • The company priced two tranches of US$500 million each in fixed-to-fixed rate junior subordinated notes due March 30, 2057
  • Coupon rates are 6.625% and 6.875%; closing is expected on September 21, 2026, subject to customary conditions
  • Investors should watch for confirmation of closing and application of proceeds toward maturing debt obligations

Two-Tranche Structure and Coupon Terms for the Fortis Junior Subordinated Notes

Fortis priced the offering as two equal tranches of US$500 million, each due March 30, 2057, for aggregate principal of US$1 billion. The first series carries a 6.625% fixed-to-fixed rate, while the second carries a 6.875% rate. Both tranches are classified as junior subordinated notes, which rank below senior debt in a creditor hierarchy — a structural consideration relevant to fixed-income investors assessing risk exposure within Fortis's overall capital structure. The company did not disclose the specific reset mechanism or reset dates applicable to the fixed-to-fixed rate feature in this announcement.

Syndicate of Underwriters Co-Leading the Firm Commitment Offering

The offering is being conducted on a firm commitment basis through a broad syndicate. Joint bookrunners are Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, and BofA Securities, Inc. Additional underwriters include BMO Capital Markets Corp., CIBC World Markets Corp., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, National Bank of Canada Financial Inc., Academy Securities, Inc., and Desjardins Securities Inc. The offering is being made in both Canada and the United States under applicable securities frameworks, with closing expected September 21, 2026.

Fortis Plans to Use Proceeds for Debt Repayment and Corporate Purposes

The release states Fortis expects to direct net proceeds toward repaying maturing indebtedness and for general corporate purposes. Fortis reported 2025 revenue of $12 billion and total assets of $79 billion as at June 30, 2026, with approximately 9,900 employees serving customers across five Canadian provinces, ten U.S. states, and the Cayman Islands. The scale of this capital raise relative to the corporation's asset base suggests routine balance sheet management consistent with a large regulated utility, though investors may be watching how the proceeds affect the company's debt maturity profile. The immediate share price impact was not clear from available public information.