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Alliant Energy unit sets $375M note offering due 2027

EditorNatashya Angelica
Published 06/04/2024, 05:00 AM
LNT
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MADISON, Wis. - Alliant Energy (NASDAQ:LNT) Finance, LLC, a fully owned subsidiary of Alliant Energy Corporation (NASDAQ: LNT), has priced a private offering of $375 million in senior unsecured notes with a 5.400% interest rate, maturing on June 6, 2027. The transaction is slated to close on June 6, 2024, pending the satisfaction of standard closing conditions. Alliant Energy Corporation will guarantee the notes unconditionally and on a senior unsecured basis.

The company plans to utilize the net proceeds from the note offering to repay its outstanding commercial paper and for general corporate purposes. The offering targets qualified institutional buyers according to Rule 144A under the Securities Act of 1933, as well as non-U.S. persons in offshore transactions under Regulation S of the same act.

The notes have not been registered under the Securities Act and will not be available for sale in the United States without registration or an exemption from the registration requirements. Consequently, there will be no public sale of these securities in any jurisdiction where such a transaction would violate securities laws.

Investors are cautioned that statements in the press release that are not historical facts are forward-looking and subject to risks and uncertainties that could cause actual results to differ from those projected. These risks include the fulfillment of customary closing conditions for the notes offering, capital market risks, and the effects of general economic or industry conditions.

The company emphasizes that there can be no guarantee the offering will be completed as anticipated or at all. Alliant Energy has advised investors to refer to the "Risk Factors" section in the company's Annual Report on Form 10-K for the fiscal year ended 2023 and its other SEC filings for a more detailed discussion of potential risks.

This news is based on a press release statement.

InvestingPro Insights

Amid Alliant Energy Corporation's (NASDAQ: LNT) announcement of its private offering of senior unsecured notes, the company's financial health and investment profile are of particular interest to prospective investors.

With a solid history of dividend reliability, Alliant Energy has not only maintained but also increased its dividend payments for an impressive 54 consecutive years, showcasing a commitment to returning value to shareholders. This consistent performance is reflected in the company's latest dividend yield of 3.73%, as of the first half of 2024.

Despite this strong dividend record, investors are taking note of the company's high P/E ratio, which stands at 18.65, suggesting a premium valuation relative to near-term earnings growth. This is further emphasized by the PEG ratio for the last twelve months as of Q1 2024, which is at 3.65, indicating that the stock's price may be outpacing its earnings growth. Moreover, the company's revenue has seen a slight decline of 5.53% over the last twelve months as of Q1 2024, signaling a potential area for investor caution.

For those looking to delve deeper into Alliant Energy's investment potential, there are additional InvestingPro Tips available, which provide a comprehensive analysis of the company's financial metrics and future outlook. With the use of the promo code PRONEWS24, readers can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to these valuable insights. For further information, visit https://www.investing.com/pro/LNT and discover the full range of 7 additional tips that could guide your investment decisions in Alliant Energy Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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