PHOENIX - Pinnacle West Capital Corp. (NYSE: NYSE:PNW), a Phoenix-based energy holding company, announced the pricing of its public offering of 9,774,436 shares of common stock at $66.50 per share. The offering, which is part of a forward sale agreement, is expected to close on March 4, 2024, subject to customary closing conditions.
The company has also granted underwriters an option to purchase up to an additional 1,466,165 shares. If this option is exercised, Pinnacle West may enter into additional forward sale agreements corresponding to the number of additional shares. Barclays, Citigroup, Mizuho, and Wells Fargo Securities are serving as joint book-running managers for the offering.
Under the terms of the forward sale agreements with Mizuho Markets Americas LLC and Wells Fargo Bank, National Association, Pinnacle West has agreed to sell its common stock to these forward purchasers at a price equal to the public offering price, subject to adjustments.
The forward purchasers or their affiliates will borrow and deliver the shares to the underwriters for the offering. Pinnacle West anticipates settling the forward sale agreements by September 4, 2025, with the option for physical, cash, or net share settlement.
Pinnacle West will not initially receive proceeds from the sale of shares by the forward sellers to the underwriters. If physical settlement is chosen for the forward sale agreements, the net proceeds are intended for investment in Pinnacle West's principal subsidiary, Arizona Public Service Company, to fund capital expenditures and general corporate purposes.
This offering is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). Relevant documents, including a preliminary prospectus supplement, are available on the SEC's website and can be obtained from the underwriters.
Pinnacle West, with consolidated assets of nearly $25 billion, owns approximately 6,500 megawatts of generating capacity and employs around 6,100 staff in Arizona and New Mexico. Its principal subsidiary, Arizona Public Service, provides electricity to about 1.4 million homes and businesses in Arizona.
The details provided are based on a press release statement and do not constitute an offer to sell or a solicitation of an offer to buy any securities.
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