Utility Emera tapped the income-seeking crowd with a $150-million preferred share sale on Tuesday, raising capital to pay for a recent shopping spree.
Halifax-based Emera sold preferred shares that pay a 4.4 per cent interest rate for the next five years, then reset at a rate that floats at 184 basis points over the five-year government of Canada bond rate. This fixed-floating approach has become standard for companies selling preferred shares in recent months, as it helps investors deal with an uncertain interest rate outlook.
Scotia Capital, RBC Dominion Securities and CIBC World Markets led the financing.
Emera purchased stakes in a number of Caribbean utilities over the past three months, and analysts expect the utility will issue up to $300-million of equity to pay for these purchases
Andrew Willis