Just Energy News: JE Stock Jumps 15% on PIMCO Stake

Just Energy (NYSE:JE) is in the news Friday after the revelation that PIMCO acquired a stake in the company sent JE stock rocketing higher.

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The Just Energy news comes from a filing with the U.S. Securities and Exchange Commission (SEC) on Thursday. In that filing, it’s revealed that investment management firm PIMCO now holds 13,872,207 shares of JE stock.

PIMCO’s recent acquisition of shares gives it a 28.9% stake in Just Energy. That’s based on the Canadian natural gas and electricity company’s 47,987,581 outstanding shares as of Sept. 28, 2020.

PIMCO spent a pretty penny to acquire its stake in Just Energy. The SEC filing notes that the firm spent roughly $38 million to acquire all of its JE shares.

The stake in Just Energy from PIMCO is the result of the company’s recent recapitalization plan. This plan had the company consolidating its common shares, reduce debt, and improve liquidity.

PIMCO’s part in this plan required it to acquire shares of the new common stock. According to the SEC filing, the acquisition of shares by PIMCO was needed to act as a backstop for the new offering of JE stock.

R. Scott Gahn, president and CEO of Just Energy, said the following when the recapitalization plan was completed in September.

“With the closing of our Recapitalization, Just Energy can confidently move forward with a solid financial position, focused on executing our strategy and serving our clients.”

JE stock was up 14.7% as of Friday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/10/just-energy-news-pushes-je-stock-higher/.

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