PGE: Offering will back gas and wind moves
By Andy Giegerich
Digital Managing Editor
PGE's Jim Piro's company will use money from the offering to fund two major energy purchases.
Remember those big $1 billion-plus deals that PGE announced last week? Remember how they weren’t quite funded at the time?
They are, for all intents and purposes, now. Portland General Electric Co. (NYSE: POR) will “commence a registered underwritten public offering” of up to 11.1 million shares of common stock. Its underwriters will be granted an option to purchase up to an extra 1.665 million shares of PGE’s common stock.
PGE revealed June 3 it will pour $1 billion into a 440-megawatt natural gas-fired power plant near Boardman, as well as nab the development rights to phase two of the 267-megawatt Lower Snake River wind farm, near Dayton, Wash.
The gas facility alone will be capable of producing enough electricity to serve around 300,000 residential customers, said Jim Piro, PGE’s president and CEO.
PGE will work on the offering with an affiliate of Barclays Capital Inc. J.P. Morgan, Wells Fargo Securities and BofA Merrill Lynch are acting as joint book-running managers for the offering while Morgan Stanley is the offering’s co-manager.
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