Entergy Corporation announces public offering of common stock with a forward component
Entergy (NYSE: ETR) has announced a registered underwritten offering of $1.3 billion of common stock shares with a forward sale component. The company has partnered with Morgan Stanley, BofA Securities, J.P. Morgan, and Mizuho as joint book-running managers.
The offering includes forward sale agreements with the counterparties, where Entergy will issue and sell shares at an initial forward sale price equal to the underwriters' purchase price. Underwriters have a 30-day option to purchase up to an additional $195 million of shares to cover over-allotments.
Settlement is expected by September 30, 2026, with Entergy having the option for cash or net share settlement. The proceeds will be used for general corporate purposes, including potential repayment of commercial paper, revolving credit facility loans, or other debt.
Entergy (NYSE: ETR) ha annunciato un'offerta registrata di 1,3 miliardi di dollari di azioni ordinarie con un componente di vendita futura. L'azienda ha collaborato con Morgan Stanley, BofA Securities, J.P. Morgan e Mizuho come gestori congiunti dell'offerta.
L'offerta include accordi di vendita futura con le controparti, in cui Entergy emetter脿 e vender脿 azioni a un prezzo iniziale di vendita futura pari al prezzo di acquisto degli underwriter. Gli underwriter hanno un'opzione di 30 giorni per acquistare fino a ulteriori 195 milioni di dollari di azioni per coprire sovrallocazioni.
Il regolamento 猫 previsto entro il 30 settembre 2026, con Entergy che ha l'opzione per un regolamento in contante o in azioni nette. I proventi saranno utilizzati per scopi aziendali generali, inclusa la potenziale restituzione di carta commerciale, prestiti da linee di credito revolving o altro debito.
Entergy (NYSE: ETR) ha anunciado una oferta registrada de 1.3 mil millones de d贸lares de acciones ordinarias con un componente de venta a futuro. La compa帽铆a se ha asociado con Morgan Stanley, BofA Securities, J.P. Morgan y Mizuho como gerentes conjuntos de la oferta.
La oferta incluye acuerdos de venta a futuro con las contrapartes, donde Entergy emitir谩 y vender谩 acciones a un precio inicial de venta a futuro igual al precio de compra de los suscriptores. Los suscriptores tienen una opci贸n de 30 d铆as para comprar hasta 195 millones de d贸lares adicionales en acciones para cubrir sobreasignaciones.
Se espera que el acuerdo se complete antes del 30 de septiembre de 2026, con Entergy teniendo la opci贸n de liquidaci贸n en efectivo o en acciones netas. Los ingresos se utilizar谩n para fines corporativos generales, incluyendo la posible reembolso de papel comercial, pr茅stamos de l铆neas de cr茅dito revolventes u otra deuda.
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Entergy (NYSE: ETR) a annonc茅 une offre enregistr茅e de 1,3 milliard de dollars d'actions ordinaires avec un composant de vente 脿 terme. La soci茅t茅 s'est associ茅e 脿 Morgan Stanley, BofA Securities, J.P. Morgan et Mizuho en tant que co-g茅rants de l'offre.
L'offre comprend des accords de vente 脿 terme avec les contreparties, o霉 Entergy 茅mettra et vendra des actions 脿 un prix de vente 脿 terme initial 茅gal au prix d'achat des souscripteurs. Les souscripteurs ont une option de 30 jours pour acheter jusqu'脿 195 millions de dollars d'actions suppl茅mentaires afin de couvrir les surallocations.
Le r猫glement est pr茅vu pour le 30 septembre 2026, Entergy ayant l'option d'un r猫glement en esp猫ces ou en actions nettes. Les produits seront utilis茅s 脿 des fins g茅n茅rales de l'entreprise, y compris le remboursement potentiel de papier commercial, de pr锚ts de lignes de cr茅dit renouvelables ou d'autres dettes.
Entergy (NYSE: ETR) hat ein registriertes, unterzeichnetes Angebot 眉ber 1,3 Milliarden Dollar an Stammaktien mit einem Forward-Verkaufskomponenten angek眉ndigt. Das Unternehmen hat sich mit Morgan Stanley, BofA Securities, J.P. Morgan und Mizuho als gemeinsame Buchf眉hrer zusammengetan.
Das Angebot umfasst Forward-Verkaufsvereinbarungen mit den Gegenparteien, bei denen Entergy Aktien zu einem anf盲nglichen Forward-Verkaufspreis ausgibt und verkauft, der dem Kaufpreis der Underwriter entspricht. Die Underwriter haben eine 30-t盲gige Option, bis zu 195 Millionen Dollar an zus盲tzlichen Aktien zu erwerben, um 脺berzeichnungsanspr眉che abzudecken.
Die Abwicklung wird bis zum 30. September 2026 erwartet, wobei Entergy die Option f眉r eine Bar- oder Nettoaktienabwicklung hat. Die Erl枚se werden f眉r allgemeine Unternehmenszwecke verwendet, einschlie脽lich der m枚glichen R眉ckzahlung von Commercial Paper, revolvierenden Kreditfazilit盲ten oder anderen Schulden.
- Flexible settlement options provide financial flexibility
- Additional $195 million over-allotment option available
- Potential debt reduction through proceeds
- Potential shareholder dilution from $1.3 billion stock offering
- Long settlement period extending to September 2026 creates uncertainty
Insights
Entergy's announcement of a
The forward component allows ETR to lock in current equity pricing while delaying actual share issuance until as late as September 2026. This strategic approach postpones potential earnings dilution while securing funding commitments today. The settlement flexibility (physical, cash, or net share settlement) gives management valuable optionality to optimize their capital structure based on future market conditions.
The stated use of proceeds for debt reduction indicates this offering is primarily focused on balance sheet management rather than specific growth initiatives. For a capital-intensive utility like Entergy, reducing leverage can improve credit metrics and potentially lower interest expenses. The participation of major financial institutions (Morgan Stanley, BofA Securities, J.P. Morgan, and Mizuho) as both underwriters and forward counterparties adds institutional credibility to the transaction.
While investors should consider the potential dilution impact if physically settled, the forward structure demonstrates sophisticated treasury management rather than urgent capital needs. The additional
This forward-structured equity offering represents an increasingly common and sophisticated approach to capital management in the utility sector. The
Forward sale agreements have gained popularity among utilities as they effectively bridge timing gaps between capital needs and optimal market conditions for share issuance. By securing the commitment now but delaying actual settlement, Entergy gains valuable optionality while maintaining certainty around future funding availability.
The focus on debt repayment aligns with prudent utility financial management. Regulated utilities must maintain appropriate debt-to-equity ratios to satisfy both regulators and credit rating agencies. This transaction appears designed to strengthen Entergy's financial foundation while preserving flexibility.
The settlement window extending to September 2026 is particularly valuable in the current interest rate environment, allowing management to time the actual impact on their capital structure. While the offering introduces potential dilution concerns, the strategic benefits of enhanced financial flexibility and improved debt metrics could offset these drawbacks. The transaction structure suggests deliberate long-term financial planning rather than a reactive capital raise, indicating confidence in the company's strategic direction.
In connection with the offering, Entergy expects to enter into forward sale agreements with each of Morgan Stanley & Co. LLC, Bank of America, N.A., JPMorgan Chase Bank, National Association and Mizuho Markets Americas LLC (with Mizuho Securities
Settlement of the forward sale agreements is expected to occur on or prior to September 30, 2026. Entergy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.
If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility or other debt.
The offering is being made pursuant to Entergy's effective shelf registration statement filed with the
Morgan Stanley & Co. LLC
180 Varick St, 2nd Floor
Attn: Prospectus Department
BofA Securities, Inc.
NC1-022-02-25
201 North Tryon Street
Charlotte, NC听 28255-0001
Attn: Prospectus Department
贰尘补颈濒:听[email protected]
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
贰尘补颈濒:听[email protected]听补苍诲
[email protected]
Mizuho Securities
1271 Avenue of the
Attn: Equity Capital Markets
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
About Entergy
Entergy Corporation is an integrated energy company engaged in electric power production, transmission听补苍诲 retail distribution operations. Entergy owns and leases a
Entergy is traded on the New York Stock Exchange under the symbol ETR.
Forward-looking statements
This press release contains forward-looking statements regarding our planned offer and sale of common stock and the use of the net proceeds from any such sale. We cannot be sure that we will complete the offering or, if we do, on what terms we will complete it. Forward-looking statements are based on current beliefs and expectations and are subject to inherent risks and uncertainties. In addition, Entergy management retains broad discretion with respect to the allocation of net proceeds of the offering. The forward-looking statements speak only as of the date of release, and Entergy is under no obligation to, and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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FAQ
What is the size of Entergy's (ETR) new stock offering announced in March 2025?
When is the settlement date for ETR's forward sale agreements?
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Which investment banks are managing Entergy's 2025 stock offering?
What settlement options does ETR have for the forward sale agreements?
