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Great Plains greenshoe fully exercised, lifts units to $287.5 million
By Devika Patel
Knoxville, Tenn., May 14 - Underwriters for Great Plains Energy Inc.'s 12% mandatory convertible equity units exercised their over-allotment option in full for 750,000 more of the units, or $37.5 million, increasing the size of the issue to $287.5 million, the company said in a press release.
As previously reported, the company sold the units at $50.00 apiece on Tuesday in a registered, off-the-shelf offering via joint book-running managers Goldman, Sachs & Co. and J.P. Morgan Securities Inc.
The units have a conversion premium of 20% and a conversion price of $16.80.
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 into common shares no later than June 15, 2012.
Concurrently, the electric utility holding company priced 10 million shares at $14.00 each for an offering of about $140 million in size.
Proceeds from both offerings 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.
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