Great Plains Energy Incorporated announced that it plans to commence a public offering of approximately $400 million of securities consisting of 5,000,000 equity units with an initial stated amount of $50 per unit, or $250 million in the aggregate, and 10 million shares, or approximately $150 million, of common stock based on the last reported sale price of the Company’s common stock on the NYSE on May 8, 2009. Additionally, Great Plains Energy will grant the underwriters an option to purchase up to 750,000 additional equity units and up to 1,500,000 shares of additional common stock to cover over-allotments, if any.
Neither the common share offering nor the equity units offering will be contingent on the other.
The equity units will initially consist of a forward purchase contract and a beneficial ownership interest in $1,000 principal amount of the Company’s subordinated notes due 2042. Under the purchase contract, holders will be required to purchase a variable number of shares of the Company’s common stock no later than June 15, 2012.
Great Plains Energy intends to use the net proceeds from both of these offerings to repay all or a portion of borrowings under its revolving credit facility and to make contributions of capital to Kansas City Power & Light Company (“KCP&L”) and KCP&L Greater Missouri Operations Company (“GMO”) for general corporate purposes, including the repayment of all or a portion of KCP&L’s outstanding commercial paper, the repayment of all or a portion of borrowings under GMO’s revolving credit facilities and the funding of construction expenditures.
Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are acting as the joint book-running managers for both offerings.
Each offering will be made under Great Plains Energy’s shelf registration statement filed with the Securities and Exchange Commission on May 11, 2009, and only by means of a prospectus supplement and accompanying prospectus.
Copies of documents relating to the shares of common stock and the equity units may be obtained from Goldman, Sachs & Co., Broad Street, 20th Floor, New York, New York 10004, Attn: Prospectus Department, by calling toll-free at 866-471-2526, by fax at 212-902-9316 or by emailing firstname.lastname@example.org, and from J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245, Attn: Chase Distribution and Support Service, Northeast Statement Processing, telephone: 718-242-8002, fax 718-242-8003.
Headquartered in Kansas City, Mo., Great Plains Energy Incorporated is the holding company of Kansas City Power & Light Company (“KCP&L”) and KCP&L Greater Missouri Operations (“GMO”), two of the leading regulated providers of electricity in the Midwest. Kansas City Power & Light Company and KCP&L Greater Missouri Operations use KCP&L as a brand name.