Emera Inc.

Emera Inc. in its US$10.4 billion acquisition of TECO Energy Inc. and $1.9 billion Bought Deal Offering of Convertible Debentures

Client

Emera Inc.

Value

US$10.4 billion + $1.9 billion

Service

Mergers and Acquisitions

Date Closed

July 2016

Lead Office

Toronto


2015_09_Emera-Deal.jpg

 

On September 4, 2015, Emera Inc. (“Emera”), a leading Canadian energy and services company, announced its acquisition of TECO Energy, Inc. (“TECO”), a Florida and New Mexico regulated electric and gas utilities holding company for US$6.5 billion. Under the terms of the all-cash agreement, TECO investors will receive US$27.55 per common share, a 48-per-cent premium based on the unaffected closing share price of July 15, 2015. The deal also includes about US$3.9-billion in debt, bringing the total deal to US$10.4 billion.

Emera’s deal with TECO creates a top 20 North American regulated utility with geographic diversity and significant growth potential. The acquisition also provides Emera with further opportunities to supply customers with cleaner generation.

On September 8, Emera also announced a $1.9 billion convertible debenture offering to help fund the acquisition. The offering is being co-led by Scotiabank, RBC Capital Markets and J.P. Morgan. The banks have the option to purchase up to an additional $285 million of the securities at the same price within 30 days of closing, which is expected to occur on or about September 28th.

Osler represented Emera in the acquisition and bought deal offering with a team led by John Macfarlane that included Jay Greenspoon, Daniel Fombonne, Lauren Hulme and Alex Gorka (M&A and Corporate Finance), Laurie Barrett and Scott Cooper (Banking and Financial Services), and Drew Morier, David Davachi and Paul Seraganian (Taxation).


Team
John  Macfarlane
Key Contact

John Macfarlane

Partner, Corporate

Alex Gorka

Alex Gorka

Partner, Corporate

Drew Morier | International Tax Lawyer

Drew Morier

Partner, Taxation

David Davachi

David Davachi

Partner, Taxation

Paul Seraganian - Cross Border Tax Lawyer

Paul Seraganian

New York Managing Partner