By Rebecca Melvin
New York, May 13 - Great Plains Energy Inc. priced $250 million of mandatory convertible equity units after the close Tuesday to yield 12% with an initial conversion premium of 20%, according to a news release.
The mandatories, consisting of five million units at par of $50, priced at the aggressive end of talk which was 12% to 12.5% for the coupon and 15% to 20% for the initial conversion premium.
Concurrently, the electric utility holding company priced 10 million shares at $14 each, for an offering of about $140 million in size.
There is also a greenshoe of up to 750,000 equity units and up to 1.5 million shares.
Goldman, Sachs & Co. and J.P. Morgan Securities Inc. were joint book-running managers of both offerings, which were made under a shelf registration statement.
The three-year equity units will initially consist of a forward purchase contract and a 5% beneficial ownership interest in $1,000 principal amount of the company's subordinated notes due 2042.
Under the purchase contract, holders will be required to convert in to common shares no later than June 15, 2012.
Proceeds from both offerings, or $375 million, will be used to repay all or part of the borrowings under a revolving credit facility and to make contributions of capital to Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co. for general corporate purposes, including repayment of KCP&L's outstanding commercial paper, and repayment of all or a portion of borrowings under Greater Missouri's revolving credit facilities.
Kansas City, Mo.-based Great Plains Energy is the holding company of those two regulated utilities, Kansas City Power & Light and KCP&L Greater Missouri Operations.
| Issuer: | Great Plains Energy Inc.
|
| Issue: | Mandatory convertible equity units
|
| Amount: | $250 million
|
| Concurrent offering: | $140 million of common shares, at $14 per share
|
| Bookrunners: | Goldman Sachs and JP Morgan
|
| Maturity: | June 15, 2012
|
| Coupon: | 12%
|
| Price: | Par of $50 a unit
|
| Yield: | 12%
|
| Conversion premium: | 20%
|
| Conversion price: | $16.80
|
| Minimum conversion rate: | 2.9762
|
| Maximum conversion rate: | 3.5714
|
| Price talk: | 12%-12.5%, up 15%-20%
|
| Pricing date: | May 12
|
| Settlement: | May 18
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: GXP
|
| Market capitalization: | $1.7 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
