Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

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.

More Related to this Story



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

Follow us on Twitter: @GlobeBusiness

 

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories