Pinnacle West Capital Corporation Announces Equity Distribution Agreement with Multiple Investment Firms

On November 8, 2024, Pinnacle West Capital Corporation (NYSE:PNW) entered into an Equity Distribution Agreement with several well-known investment firms: BofA Securities, Inc., Barclays Capital Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities, Inc., and Wells Fargo Securities, LLC. This agreement allows for the offer and potential sale from time to time of shares of the company’s common stock with an aggregate gross sales price of up to $900,000,000.

Sales under this Agreement, if initiated, may be conducted through various methods permitted by law, including “at the market offerings,” brokers’ transactions, or through electronic communications networks. The Managers and the Forward Sellers involved in the agreement will receive commissions of up to 1% of the aggregate gross sales price per share for any shares sold.

Moreover, the agreement allows for the potential issuance of forward sale agreements between Pinnacle West Capital and the relevant Forward Purchasers. These agreements involve the borrowing and selling of shares, with the Forward Sellers receiving a commission of up to 1% of the gross sales prices of borrowed shares sold during the applicable forward hedge selling period.

The total value of shares to be sold under this Agreement, including any forward sale agreements, will not exceed $900,000,000. Pinnacle West Capital has the flexibility to suspend or terminate offers and sales under this Agreement at any time.

Proceeds from these sales are expected to be allocated towards investments in Arizona Public Service Company (“APS”), capital expenditures, repayment of commercial paper, or for general corporate purposes as deemed necessary by the company.

The sale of these shares has been registered under the Securities Act, and detailed information about the Agreement can be found in the filing with the Securities and Exchange Commission. The Equity Distribution Agreement is a significant step for Pinnacle West Capital Corporation, providing the company with additional flexibility in its capital-raising activities and strategic investments.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Pinnacle West Capital’s 8K filing here.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables.