8-KOther Events

ENTERGY CORP /DE/ 8-K Report, Corporate Update (Dec 12, 2018)

Filed December 12, 2018For Securities:ETR

Summary

Entergy Corporation (ETR) has provided an update on its forward sale agreements for common stock. On December 12, 2018, the company physically settled a portion of these agreements by delivering 6,834,221 shares of its common stock. This transaction resulted in the company receiving approximately $500 million in cash proceeds, based on a forward sale price of $74.45 per share, adjusted per the agreement terms. This settlement demonstrates progress in managing the company's equity-related financial instruments. The company still has remaining obligations under these forward sale agreements concerning 8,448,171 shares of common stock. Entergy has the discretion to choose the settlement date for these remaining shares, up to a deadline of June 7, 2019. Investors should monitor future filings for updates on the settlement of these remaining shares, which could impact the company's share count and capital structure.

Key Highlights

  • 1Entergy Corporation physically settled a portion of its forward sale agreements on December 12, 2018.
  • 2The company delivered 6,834,221 shares of common stock as part of this settlement.
  • 3Approximately $500 million in cash proceeds were received by Entergy from this partial settlement.
  • 4The forward sale price used was $74.45 per share, adjusted according to the agreement.
  • 5Entergy has remaining obligations related to 8,448,171 shares of common stock under these agreements.
  • 6The settlement for the remaining shares can be elected by Entergy at its discretion before June 7, 2019.

Frequently Asked Questions

The forward sale agreements, entered into on June 6 and June 7, 2018, allowed Entergy to effectively sell shares of its common stock in the future, securing cash proceeds. The company had the flexibility to choose the settlement method (physical, cash, or net share) and timing.

Physical settlement means Entergy delivered its own shares. This allows the company to receive immediate cash proceeds while also reducing the number of shares it may need to settle in the future, potentially impacting its share count and dilution.

By physically settling 6,834,221 shares, Entergy has reduced its potential future share count. The remaining 8,448,171 shares still need to be settled, which could result in further adjustments to the company's outstanding shares depending on the settlement method chosen.

Entergy has until June 7, 2019, to settle the remaining obligations related to 8,448,171 shares. The company can elect the settlement date at its discretion within this timeframe.