Evergy (NASDAQ: EVRG) takes $55M loan, to buy back $244.1M converts

Rhea-AI Filing Summary

Evergy, Inc. entered into a new $55 million unsecured term loan with Bank of America, N.A., maturing on January 6, 2027, to support working capital, capital spending, permitted acquisitions and other general corporate needs. The facility includes a covenant that limits the ratio of total indebtedness to total capitalization to 0.65 to 1.00 on a consolidated basis.

Evergy also agreed to privately repurchase for cash about $244.1 million aggregate principal amount of its 4.50% Convertible Notes due 2027 for a total cost of approximately $302.5 million, with the final price partly tied to the volume‑weighted average share price over a defined measurement period starting January 7, 2026. After these repurchases close, about $1,155.9 million principal amount of the convertible notes will remain outstanding.

Insights

Capital structure analyst

Evergy adds a $55M term loan while retiring $244.1M of 4.50% convertible notes.

Evergy has arranged a new unsecured term loan of $55 million with Bank of America that runs until January 6, 2027. The company plans to use the proceeds for working capital, capital expenditures, permitted acquisitions and general corporate purposes, giving it flexibility in how it funds near‑term needs.

Separately, Evergy entered privately negotiated agreements to repurchase about $244.1 million aggregate principal of its 4.50% Convertible Notes due 2027 for total cash consideration of roughly $302.5 million, including accrued interest. The final price will depend in part on the daily volume‑weighted average price of Evergy’s common stock over a measurement period beginning on January 7, 2026, and closing is subject to customary conditions.

After completion of these repurchases, approximately $1,155.9 million principal amount of the notes will remain outstanding. The notes were initially convertible at 16.1809 shares per $1,000 principal amount, implying an initial conversion price of about $61.80 per share, so reducing their principal decreases potential future equity issuance from conversion relative to leaving all of the notes outstanding.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 7, 2026

Evergy, Inc.

(Exact Name of Registrant as Specified in Charter)

Missouri		001-38515		82-2733395
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

1200 Main Street

Kansas City, Missouri 64105

(Address of Principal Executive Offices, and Zip Code)

(816) 556-2200

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Evergy, Inc. common stock		EVRG		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement.

On January 7, 2026, Evergy, Inc. (“Evergy”) entered into a $55 million unsecured Term Loan Credit Agreement (the “Term Loan Facility”) with Bank of America, N.A., as the lender. The Term Loan Facility will expire on January 6, 2027. Evergy expects the proceeds of the borrowings under the Term Loan Facility to be used for, among other things, working capital, capital expenditures, permitted acquisitions and general corporate purposes.

The Term Loan Facility contains customary covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization at 0.65 to 1.00, for Evergy and its subsidiaries on a consolidated basis.

The description above does not purport to be complete and is qualified in its entirety by reference to the provisions in the Term Loan Facility, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above is incorporated herein by reference.

Item 8.01. Other Events.

On January 7, 2026, Evergy entered into separate, privately negotiated repurchase agreements with certain holders of its 4.50% Convertible Notes due 2027 (the “Notes”) to repurchase for cash (the “Repurchases”) approximately $244.1 million aggregate principal amount of the Notes for a total repurchase cost (including accrued and unpaid interest) of approximately $302.5 million. The final aggregate cash repurchase price is subject to adjustment as a portion of the repurchase price will be based in part on the daily volume-weighted average price per share of Evergy’s common stock over an agreed measurement period beginning on, and including, January 7, 2026.

The Repurchases are expected to close shortly after completion of the measurement period, subject to the satisfaction of customary closing conditions. Following such closings, approximately $1,155.9 million aggregate principal amount of the Notes will remain outstanding.

As more fully described in Evergy’s Form 10-K for the fiscal year ended December 31, 2024, the Notes were initially convertible at a rate of 16.1809 shares of Evergy, Inc. common stock per $1,000 principal amount of Notes, which was equivalent to an initial conversion price of approximately $61.80 per share of Evergy, Inc. common stock.

Evergy expects that holders of the Notes that sell their Notes to Evergy pursuant to the Repurchases may enter into or unwind various derivatives with respect to Evergy’s common stock and/or purchase or sell shares of Evergy’s common stock in the market to hedge their exposure in connection with these transactions, as further described in the press filed hereto as Exhibit 99.1.

On January 7, 2026, Evergy issued a press release relating to the Repurchases, which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

This Current Report on Form 8-K, including the exhibits attached hereto, does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This Current Report on Form 8-K shall not constitute an offer to purchase, or a redemption notice for, any of the Company’s outstanding Notes.

Item 9.01. Financial Statements and Exhibits.

Exhibit 10.1		Term Loan Credit Agreement, dated as of January 7, 2026, between Evergy, Inc. and Bank of America, N.A., as the lender.
Exhibit 99.1		Press release announcing the partial notes repurchase, dated January 7, 2026.
Exhibit 104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Evergy, Inc.

/s/ Geoffrey T. Ley

Geoffrey T. Ley

Senior Vice President, Corporate Planning and Treasurer

Date: January 7, 2026

FAQ

What new credit facility did Evergy (EVRG) enter on January 7, 2026?

Evergy entered a new $55 million unsecured Term Loan Credit Agreement with Bank of America, N.A. as lender. The term loan facility expires on January 6, 2027 and can be used for working capital, capital expenditures, permitted acquisitions and general corporate purposes.

What key financial covenant applies to Evergys new $55 million term loan?

The term loan includes a covenant that limits Evergys consolidated total indebtedness to total capitalization ratio to 0.65 to 1.00. This covenant applies to Evergy and its subsidiaries on a consolidated basis.

How much of Evergys 4.50% Convertible Notes due 2027 is being repurchased?

Evergy agreed to repurchase for cash approximately $244.1 million aggregate principal amount of its 4.50% Convertible Notes due 2027. The total repurchase cost, including accrued and unpaid interest, is about $302.5 million, subject to final adjustment based on an agreed pricing formula.

How will the repurchase price of Evergys 4.50% Convertible Notes be determined?

The final aggregate cash repurchase price will be adjusted in part based on the daily volume‑weighted average price per share of Evergys common stock over an agreed measurement period that begins on, and includes, January 7, 2026.

How much of Evergys 4.50% Convertible Notes due 2027 will remain outstanding after the repurchases?

Following the closing of the repurchases, approximately $1,155.9 million aggregate principal amount of Evergys 4.50% Convertible Notes due 2027 will remain outstanding.

What is the initial conversion rate and price for Evergys 4.50% Convertible Notes due 2027?

The notes were initially convertible at a rate of 16.1809 shares of Evergy common stock per $1,000 principal amount of notes, which corresponds to an initial conversion price of approximately $61.80 per share.

Does the Evergy 8-K filing constitute an offer to sell or purchase securities?

No. The company states that this report, including its exhibits, does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor does it constitute an offer to purchase or a redemption notice for any of Evergys outstanding notes.