FortisTCI Closes on US$45 Million Private Placement Debt Issue to Fund Planned Capital Projects

CUSTOMER CARE 649-946-4313
May 11, 2016

Providenciales, Turks & Caicos Islands, Wednesday, May 11, 2016 - FortisTCI (the Company) is pleased to announce that it recently closed on a US$45 million private placement debt issue in the US Private Placement Market in New York. The private placement consisted of US$22.5 million 5.14% Senior Unsecured Notes, Series 2016-A, due May 2, 2031, and US$22.5 million 5.29% Senior Unsecured Notes, Series 2016-B, due by September 15, 2031. Bank of America Merrill Lynch acted as sole placement agent for the Company. Last year, FortisTCI also successfully retained its Corporate Credit Rating of ‘BBB’ (Outlook Stable) from Standards & Poor aiding this process.

 

The Company will use the funds toward financing its 2016 and 2017 Capital Infrastructure Program. During this period, FortisTCI estimates that it will invest roughly $70 million inclusive of the US $45 million private placement debt issue. Capital infrastructure investments are driven by growth, improved reliability, and the integration of renewable energy.  

 

 

Some of the planned projects include: A multipurpose building on Providenciales with a new state-of-art system-wide SCADA-enabled (Supervisory Control and Data Acquisition) control room; new building facilities on Grand Turk to accommodate a range of operational activities; Renewable Energy Programs on all islands; a fixed network and meter management system; and reconstruction of a new North & Middle Caicos Transmission and Distribution network. These projects will play a major role in strengthening the electrical system, accommodating expected customer growth while also allowing the Company to integrate new technologies and renewable energy sources.


President and CEO, Mr. Eddinton Powell, said, "It is important for FortisTCI to make investments in assets and infrastructure when and where necessary. Having this ability impacts the level of service quality FortisTCI can provide to its customers. The Company remains committed to serving the Turks and Caicos Islands with the most reliable service at the least possible cost by making smart, timely, and well-planned investments." 

 

Notes to Editors:

1) FortisTCI Limited (FTCI) is a wholly owned subsidiary of Fortis Inc., and is the sole provider of electricity in Providenciales, North Caicos, Middle Caicos, South Caicos, East Caicos and adjacent Cays. In August 2012, Turks and Caicos Utility Limited (TCU), which is the sole provider of electricity on the Islands of Grand Turk and Salt Cay, was acquired by FTCI. Together the two companies serve more than 14,000 electricity customers in the Turks & Caicos Islands archipelago. FTCI and TCU have an aggregate diesel-fired generating capacity of approximately 82 megawatts, visit www.fortistci.com.

 

2) Fortis Inc. is a leader in the North American electric and gas utility business, with total assets of approximately $28 billion and fiscal 2015 revenue of $6.7 billion. The Corporation’s asset mix is approximately 96% regulated (70% electric, 26% gas), with the remaining 4% comprised of nonregulated energy infrastructure. The Corporation’s regulated utilities serve more than 3 million customers across Canada, the United States and the Caribbean. For more information about Fortis, visit www.fortisinc.com. or www.sedar.com.

 

CONTACT:

Talisha Simons

Manager of Corporate Communications

FortisTCI Ltd
Tel: 649-946-4313 Ext. 2519
Email: tsimons@fortistci.com