Fortis Inc. Restructures Preference Shares to Meet Rising Utility Demand and Investor Needs
- Fortis Inc. converted Series H preference shares to Series I, adjusting its capital structure amid rising utility demand.
- Series H Shares now yield a fixed 4.183% dividend, while Series I offers a floating 4.103% dividend.
- Fortis reported $12 billion in revenue for 2024, continuing to expand its infrastructure and renewable energy investments.
Fortis Inc. Adjusts Preference Share Structure Amidst Growing Utility Demand
Fortis Inc. announces recent conversions between its Series H and Series I first preference shares, reflecting a strategic move within its capital structure. On June 2, 2025, the company reports that 11,298 of the total 7,665,082 outstanding Series H Shares have been converted into Series I Shares. Conversely, 248,830 of the 2,334,918 Series I Shares have reverted back to Series H Shares. This adjustment results in a total of 7,902,614 Series H Shares and 2,097,386 Series I Shares now issued and outstanding. Both series will continue to trade on the Toronto Stock Exchange under their respective symbols, FTS.PR.H and FTS.PR.I.
The conversion highlights Fortis's ability to adapt to changing market conditions and investor preferences. The Series H Shares will offer a fixed quarterly dividend at an annual rate of 4.183% for the next five years, providing investors with stability during a time of fluctuating interest rates. In contrast, the Series I Shares will provide a floating quarterly dividend starting at 4.103%, which adjusts quarterly based on the three-month Government of Canada Treasury Bill rate plus 1.450%. This flexibility in dividend offerings positions Fortis advantageously as it navigates the complexities of the utility sector while catering to diverse investor needs.
As a leader in the North American regulated electric and gas utility sector, Fortis continues to reinforce its financial health. With reported revenues of $12 billion for the year 2024 and total assets amounting to $75 billion as of March 31, 2025, the company maintains a robust operational footprint. It employs approximately 9,800 individuals, delivering essential services across five Canadian provinces, ten U.S. states, and three Caribbean countries. These factors contribute to Fortis's sustained growth and underline its commitment to providing reliable energy solutions in a rapidly evolving market.
In addition to the preference share conversions, Fortis remains focused on expanding its infrastructure and service capabilities. The company is actively investing in renewable energy initiatives and grid modernization projects aimed at enhancing sustainability and efficiency. This strategic direction aligns with broader industry trends toward decarbonization and energy transition.
The adjustments in Fortis's capital structure are indicative of its proactive approach to financial management and market responsiveness. As the utility sector faces increasing demand for reliable and sustainable energy, Fortis's adaptability will be crucial in maintaining its competitive edge and fulfilling its role as a key player in the energy landscape.