Prospectus excerpt: This short form prospectus (the ‘‘Prospectus’’) qualifies for distribution 5,000,000 cumulative redeemable convertible first preference shares, series C (the ‘‘Series C First Preference Shares’’) of Fortis Inc. (‘‘Fortis’’ or the ‘‘Company’’), of which 1,000,000 Series C First Preference Shares are being issued pursuant to an option granted to the Underwriters which was exercised in full on May 26, 2003.
The Series C First Preference Shares of the Company will be entitled to fixed cumulative preferential cash dividends, if, as and when declared by the board of directors of the Company at a rate of $1.3625 per share per annum, to accrue from the date of original issue, payable in equal quarterly instalments on the first day of March, June, September and December of each year. Assuming an issue date of June 3, 2003, the first dividend will be payable as of September 1, 2003 in the amount of $0.3360 per Series C First Preference Share.
On or after June 1, 2010, the Company may, at its option, upon not less than 30 days and not more than 60 days prior written notice, redeem for cash the Series C First Preference Shares, in whole at any time or in part from time to time, at $25.75 per share if redeemed before June 1, 2011, at $25.50 per share if redeemed on or after June 1, 2011, but before June 1, 2012, at $25.25 per share if redeemed on or after June 1, 2012, but before June 1, 2013, and at $25.00 per share if redeemed on or after June 1, 2013, plus in each case, all accrued and unpaid dividends up to but excluding the date fixed for redemption.