Pinnacle West Capital Corp. (PNW) announced on Tuesday the pricing of its offering of $475 million in 4.75% convertible senior notes due 2027, an increase from the originally planned $450 million. Additionally, Pinnacle West has provided the initial purchasers an option to buy up to an extra $50 million in notes.
The company anticipates net proceeds of $468 million, or up to $517.4 million if the initial purchasers fully exercise their additional purchase option. Pinnacle West plans to use these proceeds to refinance existing debt, support working capital, invest in its operating subsidiary, Arizona Public Service Company, and for general corporate purposes.
The initial conversion rate for these notes is set at 10.8338 shares per $1,000 of notes, with an initial conversion price of approximately $92.30 per share. This conversion price is roughly 20% above Pinnacle West's closing share price on June 3, 2024.
