| Long-Term Debt |
LONG-TERM DEBT | | | | | | | | | | | | | | | | | | | | | ($ millions) | Maturity Date | | 2024 | | | 2023 | | | ITC | | | | | | | Secured U.S. First Mortgage Bonds - | | | | | | | 4.34% weighted average fixed rate (2023 - 4.22%) | 2027-2055 | | 3,944 | | | 3,268 | | | Secured U.S. Senior Notes - | | | | | | | 4.16% weighted average fixed rate (2023 - 4.00%) | 2028-2055 | | 1,511 | | | 1,278 | | | Unsecured U.S. Senior Notes - | | | | | | | 4.37% weighted average fixed rate (2023 - 4.16%) | 2026-2043 | | 5,610 | | | 5,165 | | | Unsecured U.S. Shareholder Note - | | | | | | | 6.00% fixed rate (2023 - 6.00%) | 2028 | | 286 | | | 263 | | | | | | | | | | | | | | | | UNS Energy | | | | | | | | | | | | | | | | | | | | Unsecured U.S. Fixed Rate Notes - | | | | | | | 4.09% weighted average fixed rate (2023 - 3.80%) | 2026-2053 | | 4,172 | | | 3,668 | | | Central Hudson | | | | | | Unsecured U.S. Promissory Notes - 4.38% weighted | | | | | | | average fixed and variable rate (2023 - 4.27%) | 2025-2060 | | 1,974 | | | 1,687 | | | FortisBC Energy | | | | | | | Unsecured Debentures - | | | | | | | 4.61% weighted average fixed rate (2023 - 4.61%) | 2026-2052 | | 3,295 | | | 3,295 | | | FortisAlberta | | | | | | | Unsecured Debentures - | | | | | | | 4.63% weighted average fixed rate (2023 - 4.52%) | 2034-2054 | | 2,835 | | | 2,685 | | | FortisBC Electric | | | | | | | | | | | | | | | | | | | | Unsecured Debentures - | | | | | | | 4.72% weighted average fixed rate (2023 - 4.70%) | 2035-2054 | | 960 | | | 860 | | | Other Electric | | | | | | | Secured First Mortgage Sinking Fund Bonds - | | | | | | | 5.24% weighted average fixed rate (2023 - 5.24%) | 2026-2060 | | 739 | | | 748 | | | Secured First Mortgage Bonds - | | | | | | | 5.29% weighted average fixed rate (2023 - 5.29%) | 2025-2061 | | 320 | | | 320 | | | Unsecured Senior Notes - | | | | | | | 4.61% weighted average fixed rate (2023 - 4.45%) | 2041-2054 | | 207 | | | 152 | | | Unsecured U.S. Senior Loan Notes and Bonds - | | | | | | | 5.03% weighted average fixed and variable rate (2023 - 4.89%) | 2025-2052 | | 876 | | | 702 | | | Corporate and Other | | | | | | | Unsecured U.S. Senior Notes and Promissory Notes - | | | | | | | 3.79% weighted average fixed rate (2023 - 3.82%) | 2026-2044 | | 2,172 | | | 2,251 | | | Unsecured Debentures - | | | | | | | 6.51% fixed rate (2023 - 6.51%) | 2039 | | 200 | | | 200 | | | Unsecured Senior Notes - | | | | | | | 4.11% weighted average fixed rate (2023 - 4.10%) | 2028-2033 | | 2,000 | | | 1,500 | | | | | | | | | | Long-term classification of credit facility borrowings | | 2,216 | | | 1,572 | | | Fair value adjustment - ITC acquisition | | | 88 | | | 89 | | | Total long-term debt (Note 26) | | | 33,405 | | | 29,703 | | | Less: Deferred financing costs and debt discounts | | | (191) | | | (172) | | | Less: Current installments of long-term debt | | | (1,990) | | | (2,296) | | | | | | 31,224 | | | 27,235 | |
Most long-term debt at the Corporation's regulated utilities is redeemable at the option of the respective utility at the greater of par or a specified price, together with accrued and unpaid interest. Security, if provided, is typically through a fixed or floating first charge on specific assets of the utility. The Corporation's unsecured debentures and senior notes are redeemable at the option of Fortis at the greater of par or a specified price together with accrued and unpaid interest.
Certain long-term debt agreements have covenants that provide that the Corporation shall not declare, pay or make any restricted payments, including special or extraordinary dividends, if immediately thereafter its consolidated debt to consolidated capitalization ratio would exceed 65%.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Significant Long-Term Debt Issuances in 2024 | Month Issued | | Interest Rate (%) | | Maturity | | Amount ($ millions) | | Use of Proceeds | | ITC | | | | | | | | | | Secured senior notes | January | | 5.98 | | | 2034 | | US | 85 | | | (1) (2) (3) | First mortgage bonds | January | | 5.11 | | | 2029 | | US | 75 | | | (1) (2) (3) | First mortgage bonds | January | | 5.38 | | | 2034 | | US | 75 | | | (1) (2) (3) | Unsecured senior notes | May | | 5.65 | | | 2034 | | US | 400 | | | (3) (4) | | First mortgage bonds | December | | 4.88 | | | 2035 | | US | 125 | | | (1) (2) (3) | | First mortgage bonds | December | | 5.25 | | | 2043 | | US | 125 | | | (1) (2) (3) | | UNS Energy | | | | | | | | | | | Unsecured senior notes | May | | 5.60 | | | 2036 | | US | 30 | | | (1) (3) | | Unsecured senior notes | August | | 5.20 | | | 2034 | | US | 400 | | | (3) (4) | | Central Hudson | | | | | | | | | | | Senior notes | April | | 5.59 | | | 2031 | | US | 25 | | | (1) (3) | | Senior notes | April | | 5.69 | | | 2034 | | US | 35 | | | (1) (3) | | Senior notes | October | | 4.88 | | | 2029 | | US | 25 | | | (3) (4) | | Senior notes | October | | 5.30 | | | 2034 | | US | 44 | | | (3) (4) | | Senior notes | October | | 5.40 | | | 2036 | | US | 35 | | | (3) (4) | | FortisBC Electric | | | | | | | | | | | Unsecured debentures | August | | 4.92 | | | 2054 | | 100 | | | (1) | | FortisAlberta | | | | | | | | | | | Unsecured debentures | May | | 4.90 | | | 2054 | | 300 | | | (1) (2) (3) (4) | | Caribbean Utilities | | | | | | | | | | | Unsecured senior notes | May | | 6.17 | | | 2039 | | US | 40 | | | (1) (2) (3) | | Unsecured senior notes | May | | 6.37 | | | 2049 | | US | 40 | | | (1) (2) (3) | | FortisOntario | | | | | | | | | | | Unsecured senior notes | August | | 5.05 | | | 2054 | | 55 | | | (1) | | Fortis | | | | | | | | | | | Unsecured senior notes | September | | 4.17 | | | 2031 | | 500 | | | (1) (3) (4) |
(1) Repay short-term and/or credit facility borrowings (2) Fund capital expenditures (3) General corporate purposes (4) Repay maturing long-term debt 14. LONG-TERM DEBT (cont'd)
Long-Term Debt Repayments The consolidated requirements to meet principal repayments and maturities in each of the next five years and thereafter are as follows. | | | | | | | ($ millions) | Total | | 2025 | 1,990 | | | 2026 | 2,585 | | | 2027 | 2,541 | | | 2028 | 1,499 | | | 2029 | 1,024 | | | Thereafter | 23,766 | | | 33,405 | |
In December 2024, Fortis filed a short-form base shelf prospectus with a 25-month life under which it may issue common or preference shares, subscription receipts, or debt securities in an aggregate principal amount of up to $2.0 billion. Fortis also reestablished the at-the-market equity program ("ATM Program") pursuant to the short-form base shelf prospectus, which allows the Corporation to issue up to $500 million of common shares from treasury to the public from time to time, at the Corporation's discretion, effective until January 10, 2027. As at December 31, 2024, $500 million remained available under the ATM Program and $1.5 billion remained available under the short-form base shelf prospectus.
Credit Facilities | | | | | | | | | | | | | | | | | | | | | | | | | ($ millions) | Regulated
Utilities | | Corporate
and Other | | 2024 | | | 2023 | | | Total credit facilities | 4,396 | | | 1,946 | | | 6,342 | | | 6,176 | | | Credit facilities utilized: | | | | | | | | Short-term borrowings (1) | (98) | | | — | | | (98) | | | (119) | | Long-term debt (including current portion) (2) | (1,335) | | | (881) | | | (2,216) | | | (1,572) | | | Letters of credit outstanding | (81) | | | (21) | | | (102) | | | (101) | | | Credit facilities unutilized | 2,882 | | | 1,044 | | | 3,926 | | | 4,384 | |
(1) The weighted average interest rate was approximately 6.1% (2023 - 6.9%). (2) The weighted average interest rate was approximately 4.6% (2023 - 6.2%). The current portion was $1,860 million (2023 - $1,160 million).
Credit facilities are syndicated primarily with large banks in Canada and the U.S., with no one bank holding more than approximately 20% of the Corporation's total revolving credit facilities. Approximately $5.8 billion of the total credit facilities are committed with maturities ranging from 2025 through 2029.
In April 2024, FortisBC Energy increased its operating credit facility from $700 million to $900 million and extended the maturity to July 2028. In May 2024, FortisBC Electric increased its operating credit facility from $150 million to $200 million and extended the maturity to April 2028.
In May 2024, the Corporation extended the maturity on its unsecured US$500 million non-revolving term credit facility to May 2025. Half of the term credit facility was repaid in the third quarter of 2024 and the remaining US$250 million has been fully utilized as at December 31, 2024. The facility is repayable at any time without penalty. In June 2024, the Corporation amended its $1.3 billion revolving term committed credit facility to extend the maturity to July 2029.
In August 2024, Newfoundland Power increased its operating credit facility from $100 million to $130 million and extended the maturity to August 2029. Consolidated credit facilities of approximately $6.3 billion as at December 31, 2024 are itemized below. | | | | | | | | | | | | | ($ millions) | Amount | | Maturity | | Unsecured committed revolving credit facilities | | | | | Regulated utilities | | | | ITC (1) | US | 1,000 | | | 2028 | | UNS Energy | US | 375 | | | 2027 | | Central Hudson | US | 250 | | | 2029 | | FortisBC Energy | 900 | | | 2028 | | FortisAlberta | 250 | | | 2029 | | FortisBC Electric | 200 | | | 2028 | | Other Electric | 285 | | | (2) | | Other Electric | US | 83 | | | 2025 | | Corporate and Other | 1,350 | | | (3) | | Other facilities | | | | | Regulated utilities | | | | | Central Hudson - uncommitted credit facility | US | 60 | | | n/a | | FortisBC Energy - uncommitted credit facility | 55 | | | 2025 | | | | | | FortisBC Electric - unsecured demand overdraft facility | 10 | | | n/a | | Other Electric - unsecured demand facilities | 20 | | | n/a | | Other Electric - unsecured demand facility and emergency standby loan | US | 93 | | | 2025 | | Corporate and Other | | | | | Unsecured non-revolving facility | US | 250 | | | 2025 | | Unsecured revolving facility | US | 150 | | | 2025 | | Unsecured non-revolving facility | 21 | | | n/a |
(1) ITC also has a US$400 million commercial paper program, under which $nil was outstanding as at December 31, 2024 and 2023 (2) $90 million in 2027, $65 million in 2027, and $130 million in 2029 (3) $50 million in 2026 and $1.3 billion in 2029
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