Financing Activities: Cash provided by financing activities was $36 million higher quarter over quarter due to: (i) proceeds from the issuance of preference shares in November 2012; (ii) higher net proceeds from short-term borrowings; and (iii) higher advances from non-controlling interests in the Waneta Expansion Limited Partnership ("Waneta Partnership"). The above increases were partially offset by: (i) lower proceeds from long-term debt; (ii) higher net repayments under committed credit facilities classified as long term; and (iii) higher repayments of long-term debt.
Cash provided by financing activities was $9 million lower year over year, mainly due to: (i) lower proceeds from the issuance of common shares; (ii) lower proceeds from long-term debt; (iii) higher repayments of long-term debt; (iv) higher common share dividends; and (v) costs related to the issuance of Subscription Receipts in June 2012. The above items were partially offset by: (i) higher net borrowings under committed credit facilities classified as long term; (ii) proceeds from the issuance of preference shares in November 2012; (iii) lower net repayments of short-term borrowings; and (iv) higher advances from non-controlling interests in the Waneta Partnership.
In November 2012 Fortis completed a $200 million public offering of 8 million First Preference Shares, Series J. The net proceeds of approximately $194 million were used to repay borrowings under the Corporation's committed corporate credit facility, which borrowings were primarily incurred to support the construction of the Waneta Expansion and for other general corporate purposes.
Mid-2011 Fortis publicly issued 10.3 million common shares for $341 million. The net proceeds of $327 million were largely used to repay borrowings under credit facilities and support the construction of the Waneta Expansion and for other general corporate purposes.
CAPITAL STRUCTURE
The consolidated capital structure of Fortis is presented in the following table.
----------------------------------------------------------------------------Capital Structure (Unaudited) As at December 31, 2012 December 31, 2011 ($ millions) (%) ($ millions) (%)--------------------------------------------------------------------------------------------------------------------------------------------------------Total debt and capital lease and finance obligations (net of cash) (1) 6,317 55.3 6,296 57.1Preference shares 1,108 9.7 912 8.3Common shareholders' equity 3,992 35.0 3,823 34.6----------------------------------------------------------------------------Total (2) 11,417 100.0 11,031 100.0--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Includes long-term debt and capital lease and finance obligations, including current portion, and short-term borrowings, net of cash(2) Excludes amounts related to non-controlling interests
The improvement in the capital structure was primarily due to: (i) the First Preference Shares, Series J offering in November 2012 for net proceeds of approximately $194 million, which were used to repay borrowings under the Corporation's committed corporate credit facility; (ii) common shares issued under the Corporation's dividend reinvestment and stock option plans; (iii) net earnings attributable to common equity shareholders, net of dividends; and (iv) an increase in cash. The capital structure was also impacted by an increase in long-term debt, largely in support of energy infrastructure investment.
