Pinnacle West Capital Corporation (PNW) priced its previously announced public offering of 6 million shares at $38.00 per share. This represents a total of $228 million in proceeds before deducting expenses.
These securities will be issued under a shelf registration statement, previously filed with the Securities and Exchange Commission. The transaction is expected to close on April 14, 2010, subject to customary closing conditions.
The underwriters of the sale will have the option to buy an additional 900,000 shares within a 30-day period.
Barclays Capital, Credit Suisse, BofA Merrill Lynch, and Wells Fargo Securities are acting as joint book-running managers for the transaction.
Phoenix, Arizona-based Pinnacle West Capital Corporation provides electricity services in the state of Arizona, through its subsidiaries.
The company is involved in the generation, transmission, and distribution of electricity from coal, nuclear, gas and oil, and renewable resources. As of December 31, 2009, it owned or leased approximately 6,280 mega watts of regulated generation capacity.
The company has been striving to preserve a strong balance sheet, ensuring adequate liquidity. As of December 31, 2009, Pinnacle West had $200 million of revolver replacing its previous $283 million facility. It had $149 million outstanding under its revolving credit facility with no letters of credit. Furthermore, Pinnacle has no long-term debt maturities other than SunCor until 2011.
Pinnacle’s positive investment factors include strong retail customer growth, approved general retail electricity rate hikes and a stable, attractive dividend. Over the longer term, we remain confident of Arizona’s fundamentals, allowing PNW to grow to stronger levels as the economic environment improves.
Read the full analyst report on “PNW”
Zacks Investment Research
