Great Plains Energy to launch remarketing of 10% notes on March 19

By Angela McDaniels

Tacoma, Wash., March 9 - Great Plains Energy Inc. said it expects to conduct a remarketing of its $287.5 million of outstanding 10% subordinated notes due 2042, which were originally issued as part of its corporate units on May 18, 2009.

The company expects to begin the remarketing on March 19. If necessary, it will continue on the following two business days, according to a company news release.

If the remarketing is successful during this early remarketing period, the interest rate on the notes will be reset, the ranking of the notes will change so that they are no longer subordinated and the interest deferral provisions will be removed.

The interest rate will be changed to a rate that will enable the notes to be remarketed at a price equal to the sum of the remarketing Treasury portfolio purchase price and the separate notes purchase price and, at Great Plains Energy's option, the applicable remarketing fee. The company estimates that the remarketing fee will be 0.6% to 0.875% of par.

At its option, the company may also change the maturity of the notes to any date between June 15, 2014 and June 15, 2042 and change the optional redemption features, the interest payment dates and the related events of default.

The changes would become effective on the third business day following the successful remarketing.

If the remarketing is successful during the early remarketing period, the proceeds of the remarketing of the notes that were part of corporate units will be used to purchase U.S. Treasuries, which will be substituted for the notes as a component of the corporate units and pledged to secure the corporate units holders' obligation to purchase Great Plains Energy common stock on June 15. Any remaining proceeds will be distributed pro rata to the holders of record on March 19 of the corporate units.

The proceeds from the remarketing of any separately held notes will be remitted following a successful remarketing to the holders of such notes.

Goldman Sachs & Co. (866 471-2526 or prospectus-ny@ny.email.gs.com) and J.P. Morgan Securities LLC (212 834-4533) are the lead remarketing agents.

Great Plains Energy is the holding company of electricity providers Kansas City Power & Light Co. and KCP&L Greater Missouri Operations Co. It is based in Kansas City, Mo.,

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