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Emera taps income seekers Add to ...

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.

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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


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