Progress Energy Raising Cash (PGN)
January 7, 2009 by Douglas A. McIntyre
Progress Energy Inc. (NYSE:PGN) announced yesterday that it would issue 11.5 million new shares of common stock. JP Morgan Securities Inc. and Morgan Stanley & Co. are joint managers and have an over-allotment option on 1.725 million shares.
On Monday , Progress announced that it hadsigned contracts to build two new nuclear power generation plants inFlorida. A couple of days later, the company issues new stock. Proceedsfrom the sale will be used to pay down short-term debt, "includingoutstanding commercial paper and/or borrowings under its revolvingcredit facility."
The new shares will add about 4% to the company’s outstanding shares. Not surprisingly, shares are off about 4% so far today.
Paul Ausick
January 7, 2009
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