Entergy Corp. priced a public offering of 13,289,037 shares of its common stock at $75.25 per share with a forward component.
Underwriters have a 30-day option to purchase up to an additional 1,993,355 shares to cover any overallotments. The offering is expected to close by June 11.
Morgan Stanley, Goldman Sachs & Co. LLC, J.P. Morgan, Barclays, Bank of America Merrill Lynch, Citigroup and Wells Fargo Securities are acting as joint book-running managers of the offering, according to a June 6 news release.
In connection with the offering, Entergy entered into forward sale agreements with Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and an affiliate of J.P. Morgan Securities LLC to issue and sell the shares. If the overallotment option is exercised, the utility expects to enter into additional forward sale agreements with the forward counterparties.
Entergy expects to settle the agreements by June 7, 2019. If it elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under its revolving credit facility or other debt.
