Sierra Pacific Issues 20 Million Shares

The Nevada electric utility will use a large part of the proceeds to pay off debt of a subsidiary.
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Sierra Pacific Resources (SRP) , an electric utility, said Thursday that it agreed to issue 20 million shares of its common stock to Deutsche Bank Securities.

The price at which the Nevada-based company is issuing shares is not disclosed in the press release.

The company granted a 30-day option to Deutsche Bank Securities to purchase an additional 3 million shares to cover any overallotments.

The company intends to use at least $200 million to repay debt of Nevada Power, a subsidiary of the company. Remaining proceeds will be invested in short-term instruments and used to repay debt of subsidiaries, or for general corporate purposes.

The company's shares closed Thursday at $14.40, down 10 cents, or 0.69%.

This story was created through a joint venture between TheStreet.com and IRIS.