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This news release is a “designated news release” for the purposes of Emera’s prospectus supplement dated November 14, 2023, to a short base shelf prospectus dated October 3, 2023
HALIFAX, Nova Scotia – The Government of Canada and the Government of Nova Scotia, together with NSP Maritime Link Inc. (NSPML), and Nova Scotia Power Inc. (NSPI), a subsidiary of Emera Inc., has completed an agreement to guarantee a $500M federal loan that will provide cost relief to electricity customers in Nova Scotia.
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Natural Resources Canada is providing a federal loan guarantee to support the issuance of new debt by the Maritime Link Financing Trust (MLFT). Proceeds will be forwarded to NSPI and will be applied in full to the unrecovered fuel and purchased power balance (“FAM balance”). This assistance is provided by the federal government to support Nova Scotia customers through more expensive long-term financing and the sunk costs of replacement energy needed during the several-year delay of the Muskrat Falls hydroelectric project in Newfoundland and Labrador. Debt issuance proceeds in excess of current NSPI fuel and purchased power receivable balances will be applied to fuel and purchased electricity charges.
The term and repayment mechanism of the debt to be issued under the federal loan guarantee is expected to be in line with the existing Maritime Link bond program, for a period of 28 years. The transaction is intended to help reduce rate increases for customers in Nova Scotia and help improve one of NSPI’s key credit metrics by approximately 80 bps and help stabilize credit ratings, which also directly benefits customers.
The transaction is subject to certain conditions, including regulatory approval by the Nova Scotia Utility and Review Board. NSPI and NSPML will file an application related to the federal debt guarantee on Wednesday, September 25, 2024.
Forward Home Information
This news release contains forward-looking information in the meaning of the applicable securities law, including statements about the issuance and terms of new federal loan guarantees and associated debt, planned use of proceeds from and repayment of debt issuance; expected benefit to Nova Scotia customers; expected impact to NSPI credit metrics; and satisfaction of certain conditions, including regulatory approval by the Nova Scotia Utility and Review Board. Unwanted reliance should not be placed on this forward information, which is only valid as of that date. By its nature, forward-looking information requires Emera and NSPI to make assumptions and is subject to risks and uncertainties. These statements reflect the current beliefs of Emera’s and NSPI’s management and are based on information currently available to Emera’s management. There is a risk that the predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s or NSPI’s assumptions may be incorrect and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in the securities regulatory archives of Emera and NSPI, including under the heading “Business Risks and Risk Management” in Emera and in NSPI’s annual Management Discussion and Analysis, and under the heading “Key Risks and Uncertaintiesā in the notes to the annual and interim financial statements of Emera and NSPI, which can be found on SEDAR+ at www.sedarplus.ca.
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About Nova Scotia Power
NSPI is a subsidiary of Emera Inc. (TSX-EMA), a diversified energy and services company. Nova Scotia Power provides 95% of the generation, transmission and distribution of electricity to approximately 553,000 residential, commercial and industrial customers in Nova Scotia. The company focuses on new technologies to improve customer service and reliability, reduce emissions and increase renewable energy. Nova Scotia Power has more than 2000 employees and $4.5 billion in operating assets. Learn more at www.nspower.ca.
About Emera
Emera (TSX: EMA) is a North American energy services provider headquartered in Halifax, Nova Scotia, with investments in regulated electric and natural gas utilities, and related businesses and assets. The Emera family of companies delivers safe and reliable energy to approximately 2.5 million customers in Canada, the United States and the Caribbean. Our team of 7,300 employees is committed to our goal of providing modern energy and a cleaner energy future for all. Common Emera and Emera options are listed and traded on the Toronto Stock Exchange. Additional information can be accessed at www.emera.com or www.sedarplus.ca.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20240924359380/en/
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Investor Relations
David Bezanson
Vice President Investor Relations & Pensions, Emera Inc.
902-474-2126
dave.bezanson@emera.com
Media
Dina Bartolacci Seely
media@emera.com
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