Great Plains Energy plans to commence a public offering of approximately $400 million of securities consisting of 5,000,000 equity units with an initial stated amount of $50 per unit, or $250 million in the aggregate, and 10 million shares, or approximately $150 million, of common stock based on the last reported sale price of the Company’s common stock on the NYSE on May 8, 2009.
Additionally, Great Plains Energy will grant the underwriters an option to purchase up to 750,000 additional equity units and up to 1,500,000 shares of additional common stock to cover over-allotments, if any.
Neither the common share offering nor the equity units offering will be contingent on the other.
The equity units will initially consist of a forward purchase contract and a beneficial ownership interest in $1,000 principal amount of the Company’s subordinated notes due 2042. Under the purchase contract, holders will be required to purchase a variable number of shares of the Company’s common stock no later than June 15, 2012.
Great Plains Energy intends to use the net proceeds from both of these offerings to repay all or a portion of borrowings under its revolving credit facility and to make contributions of capital to Kansas City Power & Light Company ("KCP&L") and KCP&L Greater Missouri Operations Company ("GMO") for general corporate purposes, including the repayment of all or a portion of KCP&L's outstanding commercial paper, the repayment of all or a portion of borrowings under GMO's revolving credit facilities and the funding of construction expenditures.
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