Evergy greenshoe lifts 4.5% four-year convertibles to $1.4 billion

By Wendy Van Sickle

Columbus, Ohio, Dec. 7 – Evergy Inc. issued an additional $200 million of its 4.5% four-year convertible notes as a result of the underwriters’ full exercise of their greenshoe, increasing the total size of the deal to $1.4 billion, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the initial $1.2 billion of the convertibles after the market close on Monday at par with an initial conversion premium of 22.5%, as previously reported.

Pricing came at the midpoint of talk for a coupon of 4.25% to 4.75% and at the cheap end of talk for an initial conversion premium of 22.5% to 27.5%.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and Morgan Stanley & Co. LLC were bookrunners for the Rule 144A offering.

The initial size of the offering was $1.1 billion. The greenshoe was not upsized.

The notes are non-callable.

There is dividend protection above $0.6425 per quarter.

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.

Net proceeds are expected to be $1,180,900,000.

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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