Clearway Energy LLC and its parent company, Clearway Energy, Inc. (NYSE:CWEN), announced on Thursday that the parent company had entered into an equity distribution agreement allowing it to offer and sell up to 100 million dollars of its Class C common stock through a group of sales agents.
Sales Agents and Equity Sale Mechanism
The agreement was entered into with Wells Fargo Securities, Morgan Stanley & Co. LLC, BofA Securities, Citigroup Global Markets Inc. and J.P. Morgan Securities, according to a press release included in a recent filing with the Securities and Exchange Commission.
The shares may be sold from time to time through ordinary brokerage transactions on the New York Stock Exchange, through or to a market maker, or directly via an electronic communications network, at market prices or by any other method permitted by law.
Use of Net Proceeds
Clearway Energy, Inc. said net proceeds from any sales under the program would be used for general corporate purposes, which may include repaying or refinancing debt, funding working capital, capital expenditures, acquisitions and investments.
The company added that funds not immediately needed may be reinvested in marketable securities and short-term investments.
Share Issuance and Registration
The shares will be issued pursuant to a prospectus supplement dated Thursday under the company's shelf registration statement on Form S-3, which became effective upon filing with the Securities and Exchange Commission on the same day.
