Company: EMICF
Filing Date: 2025-09-29
Form Type: 424B2
Source: 0000950103-25-012357
Chunk: 37

Company: EMERA INC
Filing Date: 2025-09-29
Form: 424B2
Chunk 37
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 distributions they receive from their subsidiaries.

The Guarantees will be the
joint, several and subordinated obligations exclusively of Emera and EUSHI and will rank junior and subordinated in right of payment to
the prior payment in full of the Guarantor’s Senior Indebtedness. Furthermore, none of Emera’s direct and indirect subsidiaries
(other than EUSHI) will guarantee or otherwise be responsible for the payment of principal of, any premium or interest or other payments
required to be made by the Guarantors under the Guarantees. Accordingly, obligations of the Guarantors under the Guarantees will be structurally
subordinated to all existing and future indebtedness and other liabilities (including trade payables) of Emera’s direct and indirect
subsidiaries (other than EUSHI).

The Indenture provides that
upon a default in payment of principal or any premium or interest on a Note, the holder of the Notes may institute legal proceedings directly
against the Guarantors to enforce the Guarantees without first proceeding against the Issuer. The obligations of each Guarantor under
the Guarantees will be limited as necessary to prevent such Guarantees from constituting a fraudulent conveyance or fraudulent transfer
under applicable law.

Subordination

The payment of the principal
of, premium, if any, and interest on the Notes and the payment of the Guarantees will:

| · | be subordinate and rank junior in right of payment to all existing and future Senior Indebtedness (as 
 defined below);                                                                                       |

| · | rank equally in right of payment with all existing and future unsecured and subordinated indebtedness                                  
 that each of the Issuer and the Guarantors may incur from time to time if the terms of such indebtedness provide that it ranks equally 
 with the Notes and Guarantees in right of payment;                                                                                     |

| · | be effectively subordinated to all existing and future secured indebtedness of the Issuer or the Guarantors, 
 to the extent of the value of the assets securing such indebtedness; and                                     |

| · | be structurally subordinated in right of payment to all existing and future indebtedness and other liabilities 
 (including trade payables) of Emera’s direct and indirect subsidiaries (other than EUSHI and the Issuer).      |

The Notes and the Guarantees
will be subordinated in right of payment to the prior payment in full of all Senior Indebtedness. This