Fortis prices $1B junior subordinated notes, among the largest utility debt deals in Canada
What's the deal? FortisDealroom has a profile for this one. Try Dealroom → (TSX/NYSE: FTS) priced a $1 billion public offering of junior subordinated notes on September 9, 2026. The regulated North American utility, based in St. John's, Newfoundland, split the issue into two equal $500 million tranches, both maturing March 30, 2057.
The terms: The first tranche carries a 6.625% fixed-to-fixed coupon; the second, 6.875%. Junior subordinated notes rank below senior debt in the creditor hierarchy, a factor for fixed-income investors weighing Fortis' capital structure. Closing is expected on September 21, 2026.
Why now? Fortis plans to use the net proceeds to repay maturing debt and for general corporate purposes — routine balance-sheet management for a utility of its scale.
By the numbers: Fortis reported revenues of $12 billion in 2025 and held total assets of $79 billion as of June 30, 2026. It employs roughly 9,900 staff serving customers across five Canadian provinces, ten US states, and the Cayman Islands.
Who's in: A broad syndicate managed the firm commitment offering. Joint bookrunners were Morgan StanleyDealroom has a profile for this one. Try Dealroom →, MUFG Securities Americas, Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom →, and BofA SecuritiesDealroom has a profile for this one. Try Dealroom →. Additional underwriters included BMO Capital MarketsDealroom has a profile for this one. Try Dealroom →, CIBC World MarketsDealroom has a profile for this one. Try Dealroom →, RBC Capital MarketsDealroom has a profile for this one. Try Dealroom →, Scotia CapitalDealroom has a profile for this one. Try Dealroom →, TD SecuritiesDealroom has a profile for this one. Try Dealroom →, National Bank of Canada Financial, Academy SecuritiesDealroom has a profile for this one. Try Dealroom →, and Desjardins SecuritiesDealroom has a profile for this one. Try Dealroom →.
The signal: At $1 billion, the raise ranks among the top 5% of all post-IPO debt deals by energy companies in Canada. For a regulated utility with $79 billion in assets, it reflects the steady, large-scale financing that underpins the sector rather than a one-off event.
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Image credit: David Paul Ohmer
