MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE) today announced the pricing of its underwritten public offering of 1,300,000 shares of common stock at a price to the public of $56.00 per share of common stock. In connection with the offering, MGE Energy has granted the underwriters a 30-day option to purchase up to an additional 195,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about May 15, 2020, subject to customary closing conditions.
The gross proceeds to MGE Energy before deducting underwriting discounts and commissions and estimated offering expenses payable by MGE Energy, are expected to be $72.8 million, excluding any exercise of the underwriters' option to purchase additional shares of our common stock. MGE Energy intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures.
Morgan Stanley and BofA Securities are acting as joint book-running managers for the offering.
A shelf registration statement on Form S-3, including a prospectus, related to the shares has been filed by MGE Energy with the U.S. Securities and Exchange Commission ("SEC") and has become effective automatically upon filing. The offering is being made only by means of a preliminary prospectus supplement and the accompanying prospectus which has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: firstname.lastname@example.org or by visiting the SEC's website at www.sec.gov under MGE Energy's name.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to 155,000 customers in Dane County, Wis., and purchases and distributes natural gas to 163,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements include the risks and uncertainties related to the completion of the offering such as the consummation of the offering on the terms described, the anticipated use of the proceeds and the satisfaction of customary closing conditions. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the "Risk Factors" sections in our preliminary prospectus supplement filed with the SEC today, including the documents incorporated by reference therein and our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 26, 2020, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on May 7, 2020, and certain of our other reports filed with the SEC.