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NSP 15-Year Cumulative Redeemable Preferred Shares

Nova Scotia Power Incorporated ("NSPI") announced today that it has entered into a C$125 million "bought deal" for a 15-year cumulative redeemable preferred share financing with an underwriting syndicate led by Scotia Capital Inc. and including CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc. and RBC Dominion Securities Inc. NSPI has also granted to the underwriters an option to purchase an additional C$10 million of preferred shares on the same terms.

The NSPI 5.90% First Preferred Shares, Series D were bought at a price of C$25.00 per preferred share. The 5.90% First Preferred Shares, Series D will be exchangeable, after 15 years, at the option of NSPI into the common stock of NSPI's parent, Emera Incorporated. Thereafter, at the option of the holder, the Series D preferred shares will, subject to certain prior rights of NSPI, be exchangeable into Emera common stock. A preliminary short form prospectus is anticipated to be filed on Friday, October 13, 2000. This transaction is subject to regulatory approval.

Gross proceeds from the sale of the preferred shares will be approximately C$125 million (subject to the underwriters' option to increase the size of the offering to C$135 million). The net proceeds will be used to repay short-term indebtedness arising from NSPI's redemption of the 6% Preferred Shares, Series A, for general corporate purposes and for working capital.

Closing of the transaction is expected on or about Tuesday, October 31, 2000.

NSPI is one of Canada's largest investor-owned fully-integrated regulated utilities, engaged in the production, transmission, distribution and sale of electric energy in Nova Scotia since 1919. NSPI is wholly-owned by Emera Incorporated.