Emera's Exchange Offer: Enhancing Liquidity and Access to Capital Markets

Emera Incorporated ("Emera") recently announced the commencement of an exchange offer for USD $500 million aggregate principal amount of outstanding 7.625% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2054 (the "Old Notes"). This move aims to enhance liquidity for investors and facilitate the issuer's access to capital markets in the future. This article explores the benefits and implications of this exchange offer for both Emera and its shareholders.

The exchange offer allows holders of the Old Notes to exchange them for new notes (the "New Notes") registered under the Securities Act. The New Notes will have identical terms to the Old Notes, except that they will not bear any legend restricting transfer. This change is expected to enhance liquidity for investors, as the New Notes will be more easily tradable on public exchanges.

The registration of the New Notes under the Securities Act also benefits Emera by providing greater access to capital markets in the future. By registering the New Notes, Emera gains the ability to offer and sell these securities to a broader range of investors, including retail investors, without the need for additional registration. This increased liquidity and accessibility can lead to higher demand and potentially better pricing for future offerings, benefiting both Emera and its investors.



The exchange offer is subject to certain conditions, including the tender of at least 95% of the outstanding Old Notes. If these conditions are met, the exchange offer is expected to expire at 11:59 p.m., New York City time, on January 13, 2025, with settlement occurring shortly thereafter. Tenders of Old Notes must be made before the exchange offer expires and may be withdrawn at any time prior to expiration.

In conclusion, Emera's exchange offer presents an opportunity for investors to enhance the liquidity of their holdings and for the issuer to gain greater access to capital markets in the future. By registering the New Notes under the Securities Act, Emera and its shareholders can benefit from increased liquidity, improved trading conditions, and better access to capital. As the exchange offer progresses, investors should monitor the developments and assess the potential impact on their investments.