Monitor Fortis's next quarterly earnings release for any update on use of proceeds (e.g., capital expenditure funding or refinancing) and any rating agency actions on the new hybrid equity credit treatment. The 10-year interest deferral option is a credit-positive structural feature but has no immediate catalyst.
Price Chart
Executive Summary
Fortis Inc. issued $1.0 billion in aggregate principal amount of junior subordinated notes across two tranches: $500 million of 6.875% fixed-to-fixed rate notes due 2057 and $500 million of 6.625% fixed-to-fixed rate notes due 2057, both dated September 21, 2026. This is a routine debt capital raise by a regulated utility holding company to refinance or fund capital expenditures, with no earnings or operational data disclosed. The issuance increases leverage modestly but is standard for the sector and carries no immediate stock-moving implications.
Key Facts
- Fortis issued $500 million of 6.875% Fixed-to-Fixed Rate Junior Subordinated Notes due 2057 (CUSIP 349553 AW7).
- Fortis issued $500 million of 6.625% Fixed-to-Fixed Rate Junior Subordinated Notes due 2057 (CUSIP 349553 AV9).
- Total aggregate principal amount issued: $1.0 billion.
- Both series are unsecured, subordinated obligations of Fortis Inc., ranking junior to all Senior Indebtedness.
- Interest on the 6.875% notes is payable semi-annually at 6.875% until March 30, 2037, then resets to 5-Year Treasury Rate plus 2.042% (floor 6.875%).
- Interest on the 6.625% notes is payable semi-annually at 6.625% until March 30, 2032, then resets to 5-Year Treasury Rate plus 2.016% (floor 6.625%).
- Fortis has the option to defer interest payments for up to 10 consecutive years without triggering an event of default.
- The notes are redeemable at par (100%) at Fortis's option after specified dates, and at 102% upon a Rating Event.
- The filing is a Form 6-K (report of foreign private issuer) dated September 21, 2026, incorporating the supplemental indentures by reference into Fortis's F-10 shelf registration.
Financial Impact
$1.0 billion in new junior subordinated debt issued; no impact on revenue, EPS, or operating cash flow disclosed.
Risk Factors
- Interest deferral option allows Fortis to suspend interest for up to 10 years; if exercised, it would signal cash flow stress.
- Subordination and structural subordination to senior debt and subsidiary obligations increases credit risk for these notes.
- Rating Event redemption at 102% premium if a rating agency methodology change reduces equity credit assigned to the notes.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-109250 |
| Document: tm2624871d2_ex99-1.htm | 0001104659-26-109250 |
| Document: tm2624871d2_6k.htm | 0001104659-26-109250 |
| Document: 0001104659-26-109250-index-headers.html | 0001104659-26-109250 |
| Document: 0001104659-26-109250-index.html | 0001104659-26-109250 |
| Document: 0001104659-26-109250.txt | 0001104659-26-109250 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $57.53 | awaiting T+20 | — | $57.53 (−0.00%) |
Oct 5, 2026 21d ago | 6-K | $52.94 | awaiting T+20 | — | $57.53 (+8.67%) |
Oct 5, 2026 21d ago | Press Release | $52.94 | awaiting T+20 | — | $57.53 (+8.67%) |
Sep 21, 2026 5w ago | 6-K | $53.61 $54.90 | ▲ +2.41% | ▲ +3.31% | $57.53 (+7.31%) |
Sep 10, 2026 6w ago | 6-K | $54.48 $53.38 | ▼ −2.02% | ▼ −4.14% | $57.53 (+5.60%) |
Sep 9, 2026 6w ago | Press Release | $54.48 $53.38 | ▼ −2.02% | ▼ −4.14% | $57.53 (+5.60%) |
Jul 31, 2026 12w ago | 6-K | $57.00 $54.66 | ▼ −4.11% | ▼ −7.09% | $57.53 (+0.93%) |
Jul 31, 2026 12w ago | Press Release | $57.00 $54.66 | ▼ −4.11% | ▼ −7.09% | $57.53 (+0.93%) |
Jul 29, 2026 12w ago | Press Release | $57.47 $54.85 | ▼ −4.56% | ▼ −8.52% | $57.53 (+0.10%) |
Jul 23, 2026 13w ago | Press Release | $58.84 $54.90 | ▼ −6.70% | ▼ −10.32% | $57.53 (−2.23%) |
US Market Status
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