Pinnacle West Prices $475 Mln Of Sr. Notes Offering

(RTTNews) - Pinnacle West Capital Corp. (PNW) Tuesday announced pricing of its offering of $475 million of 4.75% convertible senior notes due 2027. The offering was upsized from $450 million of notes.

Pinnacle West also granted the initial purchasers of the notes an option to purchase up to an additional $50 million of notes.

The company expects net proceeds of $468 million or $517.4 million if the initial purchasers exercise their option to purchase additional notes. It intends to use the proceeds to refinance debts, for working capital and investments in its operating subsidiary, Arizona Public Service Company, and for general corporate purpose.

The conversion rate for the notes will initially be 10.8338 shares per $1,000 of notes. The initial conversion price of approximately $92.30 per share represents a premium of about 20 percent over the closing price of Pinnacle West on June 3, 2024.