Entergy Corporation announces pricing of common stock offering with a forward component
Entergy (NYSE: ETR) has announced the pricing of a registered underwritten offering of 15,568,863 shares of common stock at $83.50 per share. The company has entered into forward sale agreements with Morgan Stanley & Co. , Bank of America, N.A., JPMorgan Chase Bank, and Mizuho Markets Americas
The underwriters have a 30-day option to purchase up to an additional 2,335,328 shares. Settlement of the forward sale agreements is expected by September 30, 2026. If Entergy chooses physical settlement, the net proceeds will be used for general corporate purposes, including debt repayment and commercial paper refinancing.
Entergy (NYSE: ETR) ha annunciato il prezzo di un'offerta registrata sottoscritta di 15.568.863 azioni di azioni ordinarie a 83,50 $ per azione. L'azienda ha stipulato contratti di vendita a termine con Morgan Stanley & Co., Bank of America, N.A., JPMorgan Chase Bank e Mizuho Markets Americas.
Gli underwriter hanno un'opzione di 30 giorni per acquistare fino a ulteriori 2.335.328 azioni. Si prevede che il regolamento dei contratti di vendita a termine avvenga entro il 30 settembre 2026. Se Entergy sceglie il regolamento fisico, i proventi netti saranno utilizzati per scopi aziendali generali, inclusi il rimborso del debito e il rifinanziamento della carta commerciale.
Entergy (NYSE: ETR) ha anunciado el precio de una oferta registrada suscrita de 15.568.863 acciones de acciones ordinarias a 83,50 $ por acción. La empresa ha celebrado acuerdos de venta a plazo con Morgan Stanley & Co., Bank of America, N.A., JPMorgan Chase Bank y Mizuho Markets Americas.
Los suscriptores tienen una opción de 30 días para comprar hasta 2.335.328 acciones adicionales. Se espera que el liquidación de los acuerdos de venta a plazo se realice antes del 30 de septiembre de 2026. Si Entergy elige el liquidación física, los ingresos netos se utilizarán para fines corporativos generales, incluyendo el reembolso de deudas y el refinanciamiento de papel comercial.
Entergy (NYSE: ETR)는 15,568,863주의 보통주에 대한 등록된 인수 공모의 가격을 주당 83.50달러로 발표했습니다. 이 회사는 Morgan Stanley & Co., Bank of America, N.A., JPMorgan Chase Bank 및 Mizuho Markets Americas와 선도 매각 계약을 체결했습니다.
인수자는 추가로 2,335,328주를 구매할 수 있는 30일 옵션을 보유하고 있습니다. 선도 매각 계약의 정산은 2026년 9월 30일까지 이루어질 것으로 예상됩니다. Entergy가 물리적 정산을 선택할 경우, 순수익은 일반 기업 목적, 즉 부채 상환 및 상업 어음 재융자에 사용될 것입니다.
Entergy (NYSE: ETR) a annoncé le prix d'une offre souscrite enregistrée de 15 568 863 actions d'actions ordinaires à 83,50 $ par action. L'entreprise a conclu des accords de vente à terme avec Morgan Stanley & Co., Bank of America, N.A., JPMorgan Chase Bank et Mizuho Markets Americas.
Les souscripteurs ont une option de 30 jours pour acheter jusqu'à 2 335 328 actions supplémentaires. Le règlement des accords de vente à terme devrait avoir lieu d'ici le 30 septembre 2026. Si Entergy choisit le règlement physique, les produits nets seront utilisés à des fins générales d'entreprise, y compris le remboursement de la dette et le refinancement de papier commercial.
Entergy (NYSE: ETR) hat den Preis für ein registriertes, unterzeichnetes Angebot von 15.568.863 Aktien von Stammaktien zu 83,50 $ pro Aktie bekannt gegeben. Das Unternehmen hat mit Morgan Stanley & Co., Bank of America, N.A., JPMorgan Chase Bank und Mizuho Markets Americas Forward-Verkaufsverträge abgeschlossen.
Die Underwriter haben eine 30-tägige Option, bis zu 2.335.328 Aktien zusätzlich zu erwerben. Die Abwicklung der Forward-Verkaufsverträge wird bis zum 30. September 2026 erwartet. Wenn Entergy eine physische Abwicklung wählt, werden die Nettomittel für allgemeine Unternehmenszwecke verwendet, einschließlich der Rückzahlung von Schulden und der Refinanzierung von Commercial Paper.
- Flexibility in settlement options (cash, physical, or net share settlement)
- Potential debt reduction through proceeds
- Strong syndicate of major investment banks as underwriters
- Potential dilution for existing shareholders
- Large offering size of 15.57M shares plus 2.34M over-allotment option
- Extended settlement period until September 2026 creates execution uncertainty
Insights
Entergy's $1.3 billion common stock offering represents a significant capital structure event with several strategic elements worth noting. The company has priced 15.57 million shares at $83.50 per share, featuring sophisticated forward sale agreements with major financial institutions that allow settlement flexibility until September 2026.
This forward component is particularly strategic as it enables Entergy to lock in today's equity pricing while deferring the actual share issuance and dilution for up to 18 months. Essentially, ETR has created a "reserved" capital raising capability that can be deployed at optimal timing. The
For investors, this transaction presents balanced implications. The potential dilution (approximately
The participation of multiple premier financial institutions as underwriters (Morgan Stanley, BofA, JPMorgan, Mizuho, etc.) demonstrates strong market support for the transaction, while the additional 2.34 million share over-allotment option suggests anticipation of solid demand. The structure demonstrates sophisticated treasury management that minimizes immediate EPS pressure while securing capital at current valuations.
In connection with the offering, Entergy entered into forward sale agreements with each of Morgan Stanley & Co. LLC, Bank of America, N.A., JPMorgan Chase Bank, National Association and Mizuho Markets Americas LLC (with Mizuho Securities
Settlement of the forward sale agreements is expected to occur on or prior to September 30, 2026. Entergy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.
If Entergy 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 Entergy's revolving credit facility or other debt.
The offering is being made pursuant to Entergy's effective shelf registration statement filed with the
Morgan Stanley & Co. LLC
180 Varick St, 2nd Floor
Attn: Prospectus Department
BofA Securities, Inc.
NC1-022-02-25
201 North Tryon Street
Attn: Prospectus Department
Email: dg.prospectus_requests@bofa.com
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Email: prospectus-eq_fi@jpmchase.com and
postsalemanualrequests@broadridge.com
Mizuho Securities
1271 Avenue of the
Attn: Equity Capital Markets
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
About Entergy
Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy owns and leases a
Entergy is traded on the New York Stock Exchange under the symbol ETR.
Forward-looking statements
This press release contains forward-looking statements regarding our planned offer and sale of common stock and the use of the net proceeds from any such sale. We cannot be sure that we will complete the offering or, if we do, on what terms we will complete it. Forward-looking statements are based on current beliefs and expectations and are subject to inherent risks and uncertainties. In addition, Entergy management retains broad discretion with respect to the allocation of net proceeds of the offering. The forward-looking statements speak only as of the date of release, and Entergy is under no obligation to, and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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SOURCE Entergy Corporation