Evergy, Inc. 8-K

What Happened

• Evergy filed an 8-K on January 7, 2026, reporting two material financing actions. The company entered into a $55 million unsecured Term Loan Credit Agreement with Bank of America, N.A., and separately agreed to repurchase approximately $244.1 million aggregate principal amount of its 4.50% Convertible Notes due 2027 for a total expected cash cost of about $302.5 million (including accrued interest). The term loan matures January 6, 2027.

Key Details

• Term Loan: $55 million, unsecured, lender Bank of America, N.A.; maturity January 6, 2027; proceeds for working capital, capital expenditures, permitted acquisitions and general corporate purposes.
• Covenant: consolidated maximum total indebtedness to total capitalization ratio of 0.65 to 1.00.
• Notes Repurchase: ~ $244.1M principal repurchased for ~ $302.5M total (final cash price may adjust based on VWAP of Evergy shares during a measurement period beginning Jan 7, 2026); expected close shortly after that period, subject to customary conditions.
• Post-transaction Outstanding Notes: roughly $1,155.9M principal will remain outstanding after the repurchases. Original conversion terms were 16.1809 shares per $1,000 principal (≈ $61.80 initial conversion price).

Why It Matters

• These actions affect Evergy’s capital structure and near-term liquidity. The short-term $55M loan provides interim liquidity for operations and projects but includes a leverage covenant that could constrain additional indebtedness.
• The partial repurchase reduces outstanding convertible debt (lowering potential future dilution) but costs cash (~$302.5M) and may trigger market activity: note holders may hedge or unwind derivative positions or buy/sell shares, which can affect share trading. Investors should note the transaction dates, the covenant limit, and the remaining convertible principal when assessing leverage, dilution risk, and near-term cash needs.