Evergy, Inc. (NASDAQ:EVRG), a provider of electric services with a market capitalization of $14.6 billion, announced the issuance of $500 million in junior subordinated notes due in 2055, with an interest rate of 6.65%. This adds to the company's existing debt burden of $13.8 billion, as reported by InvestingPro.
The sale took place on Thursday, under an underwriting agreement dated Monday, December 2, 2024, with a consortium of banks including BofA Securities, Citigroup (NYSE:C) Global Markets, J.P. Morgan Securities, MUFG Securities Americas, and Wells Fargo (NYSE:WFC) Securities.
The notes were offered under the company's existing shelf registration statement filed on August 16, 2024. The Supplemental Indenture No. 4 to the Subordinated Indenture, dated May 18, 2009, was used to issue these notes, with The Bank of New York Mellon (NYSE:BK) Trust Company, N.A. serving as trustee.
The transaction involved several legal agreements and instruments, which were filed as part of the company's Form 8-K, including the underwriting agreement and the supplemental indenture. Legal opinions regarding the validity of the notes and certain tax matters were also filed and incorporated into the registration statement.
Evergy's issuance of these notes reflects the company's financial activities and strategic capital raising efforts. The notes are a long-term debt instrument, with a fixed interest rate until 2055, which will contribute to Evergy's capital structure.
The information provided is based on a press release statement and the company's recent SEC filing.
In other recent news, Evergy has reported a strong third quarter, with an increase in adjusted earnings per share (EPS) to $2.02, up from $1.88 the previous year, attributed to demand growth and new retail sales. The company also announced a 4% dividend increase and a $16.2 billion capital expenditure plan through 2029.
Jefferies has raised the price target for Evergy from $71.00 to $74.00, maintaining a Buy rating. This adjustment is based on the company's updated capital strategy and potential for EPS growth.
Evergy has also established partnerships with Google (NASDAQ:GOOGL), Panasonic (OTC:PCRFY), and Meta (NASDAQ:META), representing 750 megawatts of load, and a robust pipeline of over 6 gigawatts in potential projects.
The company has reaffirmed its 2024 adjusted EPS guidance range of $3.73 to $3.93 and set its 2025 guidance at $3.92 to $4.12. It also projects a weather-normalized demand growth forecast of 2% to 3% through 2029.
Despite anticipated capacity constraints in the near term, Evergy is negotiating with two new data centers, potentially adding 500 to 1,000 megawatts of load. These are the latest developments for Evergy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.