Fortis Inc. Provides Standby Commitment to Caribbean Utilities Company, Ltd.

ST. JOHN'S, Newfoundland and Labrador, Aug. 24, 2020 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) announced today that its wholly owned subsidiary Fortis Energy (Bermuda) Ltd. ("FEBL") has agreed to provide a standby commitment (the "Standby Commitment") for a rights offering (the "Rights Offering") by Caribbean Utilities Company, Ltd. ("CUC") (TSX: CUP.U). Pursuant to the Rights Offering, CUC will issue up to an aggregate of 3,359,362 or 10% of its currently issued and outstanding Class A Ordinary Shares (the "CUC Shares"). FEBL will exercise the rights issued to it in the Rights Offering and will acquire a minimum of 1,946,032 CUC Shares at a price of US$14.24 per CUC Share for aggregate consideration of US$27,711,495.68.

Subject to certain customary terms and conditions, FEBL may acquire up to 1,413,330 additional CUC Shares at the same price pursuant to the Standby Commitment. If there are no other subscribers in the Rights Offering, FEBL will acquire a total of 3,359,362 CUC Shares through the Rights Offering and Standby Commitment for aggregate consideration of US$47,837,314.88. Based on the average daily rate of exchange quoted by the Bank of Canada on August 24, 2020, the consideration in Canadian dollars is C$18.81 per CUC Share or aggregate consideration of C$63,178,741.76 should there be no other subscribers in the Rights Offering.

Prior to the Rights Offering, Fortis indirectly owned 19,460,326 CUC Shares representing approximately 58% of the CUC Shares. On closing of the Rights Offering, which is expected to occur on or about October 28, 2020, Fortis will beneficially own approximately 58% of the CUC Shares if the Rights Offering is fully subscribed or approximately 62% of the CUC Shares if there are no other subscribers in the Rights Offering.

The purpose of the Rights Offering is to provide CUC with capital to be used to refinance existing debt and for general corporate purposes.

Fortis will review its holdings in CUC Shares from time to time and may acquire additional securities or dispose of securities of CUC, in either case, in the open market, by private agreement or otherwise, depending on numerous factors, including without limitation, the availability of securities of CUC, economic conditions, market conditions and other business and investment opportunities available to Fortis.