Evergy talks $1.1 billion four-year convertible notes to yield 4.25%-4.75%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., Dec. 4 – Evergy Inc. plans to price $1.1 billion of four-year convertible notes after the market close on Monday with price talk for a coupon of 4.25% to 4.75% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $200 million.

The notes are non-callable.

The convertibles will be settled in cash up to the principal amount with the remaining amount to be settled in cash, shares or a combination of both.

Proceeds will be used to repay the $500 million outstanding under the company’s term loan facility due 2024, to repay a portion of commercial borrowings and for general corporate purposes.

Evergy is a Kansas City, Mo.-based utility.

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