Pinnacle West Capital Corp: Arizona Public Service Company Announces \$600 Million Notes Offering – Expense Details Revealed

Key Points:

• Arizona Public Service Company (“APS”), a subsidiary of Pinnacle West Capital Corp, has disclosed detailed expenses related to its \$600,000,000 principal amount of 5.10% Notes due 2036.
• The offering is under a Registration Statement on Form S-3 and a related prospectus supplement filed with the SEC on March 10, 2026.
• Total estimated issuance and distribution expenses (excluding underwriting discounts and commissions) amount to \$1,494,186.

Expense Breakdown for Investors

APS provided a detailed estimate of costs associated with the bond issuance:

• Securities and Exchange Commission (SEC) registration fee: \$82,686
• Printing, engraving, and postage expenses: \$15,000
• Legal fees and expenses: \$9,500
• Accounting fees and expenses: \$75,000
• Rating Agency fees: \$1,300,000 (the largest single expense, reflecting the importance of credit ratings for the offering)
• Transfer Agent, Registrar, Trustee, and Depository fees and expenses: \$10,000
• Blue Sky fees and expenses: \$2,000
• Total expenses: \$1,494,186

Shareholder Considerations & Price-Sensitive Information

• The bond offering size (\$600 million) and terms (5.10% Notes due 2036) signal substantial capital raising, which may impact APS’s capital structure, liquidity, and future growth plans.
• High rating agency fee (\$1.3 million) suggests APS is prioritizing strong credit ratings, which could enhance investor confidence in the notes and potentially in the company’s shares.
• Low legal and accounting fees indicate efficient management of issuance costs, which may help preserve shareholder value.
• No underwriting discounts or commissions are included in these expenses, meaning actual total costs may be higher once those are factored in.
• The offering’s successful completion and the use of proceeds could be material to both APS and Pinnacle West Capital Corp shareholders, depending on how the funds are deployed (e.g., debt refinancing, growth projects).

Potential Impact on Share Price

• The announcement of this large-scale debt offering is newsworthy and could move Pinnacle West Capital Corp’s share price. Investors will closely watch how the proceeds are used and the effect on APS’s financial leverage and future earnings.
• If the notes are well received and APS maintains a strong credit rating, it could be a positive signal for shareholders and may support share price appreciation.
• Conversely, concerns about increasing debt levels or the cost of capital could weigh on investor sentiment.

Summary for Investors

This disclosure is important for shareholders and bond investors alike. The scale and structure of the \$600 million offering, combined with the detailed breakdown of issuance expenses, offer insights into APS’s financial strategy and cost management. The prominent rating agency fees highlight a focus on maintaining strong creditworthiness, which is key for both bond and equity investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review official filings and consult with financial advisors before making any investment decisions regarding Pinnacle West Capital Corp or its subsidiaries.

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