Evergy Announces Partial Repurchase of 4.50% Convertible Notes due 2027

Core Viewpoint - Evergy, Inc. has announced a repurchase agreement for approximately $244.1 million of its 4.50% Convertible Notes due 2027, with a total repurchase cost of about $302.5 million, including accrued interest [1]. Group 1: Repurchase Details - The repurchase agreements involve privately negotiated transactions with certain holders of the Notes [1]. - The final cash repurchase price will be adjusted based on the daily volume-weighted average price of Evergy's common stock starting January 7, 2026 [1]. - After the repurchases, approximately $1,155.9 million of the Notes will remain outstanding [2]. Group 2: Convertible Notes Information - The Notes were initially convertible at a rate of 16.1809 shares of Evergy common stock per $1,000 principal amount, equating to an initial conversion price of about $61.80 per share [3]. Group 3: Market Implications - Evergy anticipates that holders of the Notes may engage in derivative transactions or trade shares of Evergy's common stock to hedge their exposure related to the repurchase [4]. - Many holders may utilize a convertible arbitrage strategy, potentially leading to short positions in Evergy's common stock that they would close through market transactions [4]. Group 4: Company Overview - Evergy, Inc. serves 1.7 million customers in Kansas and Missouri, focusing on reliable, affordable, and sustainable energy [6]. - Approximately half of Evergy's power generation comes from carbon-free sources, emphasizing its commitment to environmental sustainability [6].