By Abigail W. Adams
Portland, Me., Dec. 5 – Evergy Inc. priced an upsized $1.2 billion of four-year convertible notes after the market close on Monday at par with a coupon of 4.5% and an initial conversion premium of 22.5%, according to a company news release.
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%, according to a market source.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and Morgan Stanley & Co. LLC were bookrunners for the Rule 144A offering, which carries a greenshoe of $200 million.
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.
| Issuer: | Evergy Inc.
|
| Amount: | $1.2 billion
|
| Greenshoe: | $200 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Dec. 15, 2027
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and Morgan Stanley & Co. LLC
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $61.80
|
| Conversion rate: | 16.1809
|
| Call options: | Non-callable
|
| Put options: | None
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 7
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 4.25% to 4.75% and initial conversion premium of 22.5% to 27.5%
|
| Stock symbol: | Nasdaq: EVRG
|
| Stock price: | $50.45 at market close Dec. 4
|
| Market capitalization: | $11.59 billion
|
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