Summary
Consolidated Edison, Inc. (Con Edison) has entered into an equity distribution agreement with multiple agents to establish an "at-the-market" equity distribution program. This program allows Con Edison to offer and sell up to $2 billion worth of its common shares over time. The company also has the option to enter into separate forward sale agreements with forward purchasers. These agreements involve the potential sale of borrowed shares, with proceeds potentially realized by Con Edison upon future physical settlement. This move provides Con Edison with financial flexibility to raise capital through equity issuance as needed, but investors should note that the ultimate proceeds received can depend on the settlement method chosen for the forward sale agreements.
Key Highlights
- 1Con Edison established an "at-the-market" equity distribution program to sell up to $2 billion of its common shares.
- 2The program is facilitated through a group of named sales agents, including major financial institutions.
- 3The company can also enter into forward sale agreements, allowing for the sale of borrowed shares.
- 4Proceeds from forward sale agreements are generally received upon future physical settlement, not immediately from borrowed share sales.
- 5Con Edison may elect cash or net share settlement for forward agreements, which could result in no proceeds or even cash/share payments to the forward purchaser.
- 6Sales can occur through various methods, including NYSE transactions, block trades, and other negotiated sales.
- 7Commissions to sales agents and forward sellers are capped at 1.0% of gross sales price.