Entergy launches $2.18 billion stock offering with forward sale component

Entergy Corporation (NYSE: ETR) announced a registered underwritten offering of $2.175 billion in common stock shares. The utility company said all shares are expected to be borrowed by forward counterparties from third parties and sold to underwriters in connection with forward sale agreements.

Wells Fargo Securities, Citigroup, Barclays and Scotiabank are serving as joint book-running managers for the offering. Entergy plans to enter into forward sale agreements with Wells Fargo Bank, National Association, Citibank, N.A., Barclays Bank PLC and The Bank of Nova Scotia.

Under the forward agreements, Entergy will issue and sell an aggregate of $2.175 billion of common stock shares to the forward counterparties at an initial forward sale price per share equal to the underwriters' purchase price, subject to certain adjustments. The underwriters have a 30-day option to purchase up to an additional $326.25 million of shares under the same terms.

Settlement of the forward sale agreements is expected to occur on or before April 30, 2028. Entergy may elect cash settlement or net share settlement for all or a portion of its obligations under the agreements, subject to certain conditions.

If Entergy elects physical settlement, the company expects to use net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under its revolving credit facility or other debt.

The offering is being conducted under Entergy's effective shelf registration statement filed with the Securities and Exchange Commission. Entergy operates power plants with approximately 25,000 megawatts of electric generating capacity and delivers electricity to approximately 3.1 million utility customers in Arkansas, Louisiana, Mississippi and Texas.

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