The combined offerings are expected to raise approximately $275 million in gross proceeds before any exercise of the underwriters' over-allotment options. A portion of the net proceeds is expected to be contributed to Kansas City Power & Light Company ("KCP&L") to retire $150 million of existing trust preferred securities. The remaining net proceeds may be used either to reduce short-term debt at Great Plains Energy or to contribute up to an additional $75 million to KCP&L to reduce indebtedness, or a mixture of both.
In connection with the offerings, the Company will grant the underwriters for each offering an option for a period of 30 days to purchase up to an additional 660,000 shares of common stock and for a period of 13 days to purchase up to an additional 900,000 FELINE PRIDES. The offerings will be made under the Company's existing shelf registration statement that has been declared effective by the Securities and Exchange Commission.
The sole book running manager for both offerings is Merrill Lynch, Pierce, Fenner & Smith Incorporated. Morgan Stanley & Co. Incorporated is a joint lead manager for the common stock offering.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities may be made only by means of the prospectus and related prospectus supplement relating to each offering. Investors will be able to obtain a copy of such documents from Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, New York 10281.
Great Plains Energy Incorporated (NYSE:GXP), headquartered in Kansas City, Missouri, is the holding company for Kansas City Power & Light Company, a leading regulated provider of electricity in the Midwest; and Strategic Energy LLC, an energy management company providing load aggregation and power supply coordination.
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