Just Energy (JE) Stock Gains On Recapitalization Approval

Just Energy JE Stock News

Just Energy (NYSE: JE) is running for the top in the marke this morning, and for good reason. The company announced that it has received all approvals to move forward with a Recapitalization Transaction. Here’s what’s going on:

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JE Stock Rockets On Recapitalization Approval

In the press release, Just Energy said that it received approval from the United States Federal Energy Regulatory Commission for its plan of arrangement. This plan is known as the Recapitalization Transaction.

With the approval in mind, JE has received all necessary approvals in order to proceed with the Recapitalization Transaction. As a result, it is expected that the transaction will close on or about Monday, September 28, 2020.

What’s the big deal?

The company’s plan will put it on a strong financial foundation. The plan includes the conversion of about $320 million of convertible debt and preferred shares into equity, a new #75 million equity investment, and the extension of due dates for about $410 million in debt and credit facilities.

Again… what’s the big deal?

The fact of the matter is that the Recapitalization Transaction will cure issues with the company’s balance sheet, providing financial stability ahead. Moreover, JE will save money on annual interest payments and increase liquidity through the transaction.

Aside from the financial aspects of the transaction, JE has agreed to revamp its Board of Directors, including the addition of at least four new members.

The Bottom Line

Just Energy has struggled. However, with this planned Recapitalization Transaction, the company will be putting itself in a strong financial position from which to build.

Moreover, the addition of new members to the Baord of Directors will bring new opinions through the door, which will likely help drive further growth.

All in all, there’s plenty of reason to be excited about JE stock.

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