8-KOther Events

ENTERGY CORP /DE/ 8-K Report, Corporate Update (Nov 10, 2022)

Filed November 10, 2022For Securities:ETR

Summary

Entergy Corporation has announced the physical settlement of its equity distribution program. The company has completed the settlement of the majority of its obligations under various forward sale agreements, delivering approximately 7.5 million shares of common stock in exchange for about $830 million in cash. This action was executed on November 8, 2022. Furthermore, Entergy has given notice to settle the remaining forward sale agreement with JPMorgan Chase Bank, National Association, concerning 200,000 shares. This final settlement is expected to occur on November 15, 2022, and will yield approximately $23 million in cash proceeds. These settlements are part of a larger at-the-market equity distribution program initiated in January 2021, with a total aggregate gross sales price of up to $2 billion.

Key Highlights

  • 1Entergy Corporation has physically settled outstanding obligations under its equity distribution program.
  • 2Approximately 7,488,419 shares of common stock were delivered for cash proceeds of roughly $830 million on November 8, 2022.
  • 3The company has initiated the process to settle the final portion of its forward sale agreements.
  • 4This final settlement involves 200,000 shares with JPMorgan Chase Bank, N.A., expected on November 15, 2022, for approximately $23 million.
  • 5These settlements are part of an 'at-the-market' equity distribution program initiated in January 2021.
  • 6The program had an initial aggregate gross sales price target of up to $2 billion.

Frequently Asked Questions

These settlements represent the physical delivery of Entergy's common stock, which was previously committed under forward sale agreements. This action results in the receipt of cash proceeds for the company, effectively concluding a portion of its equity distribution program and strengthening its liquidity position.

Entergy entered into the equity distribution program to raise capital through the sale of its common stock on the open market. This is a common strategy for companies to access funding for general corporate purposes, debt repayment, or strategic investments.

Entergy received approximately $830 million from the initial settlement on November 8, 2022, and anticipates receiving an additional $23 million from the final settlement on November 15, 2022, bringing the total cash proceeds from these specific settlements to approximately $853 million.

No, these are physical settlements. Entergy delivered existing shares of its common stock that were either held in treasury or acquired to fulfill its obligations under the forward sale agreements. This means no new shares are being issued to the public in this specific transaction.