Business Context and Reporting Period
This Form 8-K Current Report was filed by Pinnacle West Capital Corporation and its subsidiary, Arizona Public Service Company, on February 23, 2009. The filing relates to a corporate financing event involving the issuance of new debt securities.
Key Financial Metrics
The filing discloses the following specific financial metric regarding the new issuance:
- Debt Issuance: $500,000,000 of 8.750% Notes due 2019.
- Interest Rate: 8.750%.
- Maturity Date: 2019.
The filing text does not provide clear values for revenue, profit, cash flow, operating margins, total debt, or liquidity ratios. It references an exhibit (12.1) containing a computation of the Pro Forma Ratio of Earnings to Fixed Charges, but the specific numerical result is not included in the provided text.
Material Changes
The primary material change reported is the execution of an Underwriting Agreement dated February 23, 2009, to raise $500 million in long-term debt. This transaction increases the registrants' outstanding debt obligations and fixed interest charges effective from the issuance date.
Guidance, Outlook, and Risks
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure of the debt issuance. The transaction was filed as an exhibit to Post-Effective Amendment No. 1 to Registration Statement on Form S-3 (No. 333-134206).
Investor Verification Checklist
- Verify the final closing date and actual proceeds received from the $500 million note offering.
- Review Exhibit 12.1 (Computation of Pro Forma Ratio of Earnings to Fixed Charges) to assess the impact on leverage and coverage ratios.
- Confirm the use of proceeds for the new debt issuance as detailed in the full Underwriting Agreement (Exhibit 1.1).
- Check subsequent filings for any changes to the interest rate or maturity terms of the 8.750% Notes due 2019.