RE:RE:RE:the offering in englishmnztr wrote: so you come up with extra cash at that point?
I guess so, the equity unit consists of one contract to purchase shares (to be purchased in June 2024) and 5% of a $1k senior notes that runs through 2026.
This means in June 2024, they will receive another $1B from issuing the shares. At that point, there will be $1B in 1.18% notes running to 2026 and $1B in shares at a price range from $15 to $18.
Considering that right now the dividend is 4.55% (in USD) + a 5% yearly increase of the dividend, the deal is roughly the equivalent to issuing notes at an average 2.9% rate until 2026 + issuing shares in 2024 at a price range of $15 to $18. Interest is front loaded but fully tax deductible (compared to dividends).
The last "green bond" issue was done at 2.85%, so the deal is fairly in line with that, with a forced share buy collar between $15 to $18.