8-KOther Events

ENTERGY CORP /DE/ 8-K Report, Corporate Update (May 30, 2019)

Filed May 30, 2019For Securities:ETR

Summary

Entergy Corporation (ETR) has fully settled its outstanding forward sale agreements related to its common stock. In a prior transaction in December 2018, the company physically settled a portion by delivering 6.8 million shares for approximately $500 million. This most recent filing on May 30, 2019, details the complete settlement of the remaining 8.4 million shares for approximately $608 million. This concludes the company's obligations under these agreements, which initially covered over 15.2 million shares.

Key Highlights

  • 1Entergy Corporation has completed the physical settlement of all forward sale agreements entered into in June 2018.
  • 2The company delivered the remaining 8,448,171 shares of its common stock on May 30, 2019.
  • 3This final settlement generated cash proceeds of approximately $608 million.
  • 4In December 2018, a portion of the obligations was settled by delivering 6,834,221 shares for roughly $500 million.
  • 5The total number of shares involved in these forward sale agreements was 15,282,392.
  • 6This action marks the conclusion of Entergy's commitments under these specific forward sale agreements.

Frequently Asked Questions

While the filing doesn't explicitly state the original purpose, forward sale agreements are typically used by companies to raise capital by selling their stock at a future date at a predetermined price or a price determined by market conditions at settlement. This allows for flexibility in managing share issuance and capital raising.

Entergy raised a total of approximately $1.108 billion from the physical settlements of these forward sale agreements ($500 million in December 2018 + $608 million in May 2019).

No, the company physically settled the agreements by delivering existing shares of its common stock. This means the total number of outstanding shares was reduced by the shares delivered, rather than increasing the outstanding share count.

Physical settlement means that Entergy delivered its own shares of common stock to the counterparties. This is in contrast to 'cash settlement,' where the company would have paid the difference in value in cash without delivering actual shares.