Xcel Energy Announces Closing of Common Stock Offering with a Forward Component
November 05 2024 - 9:43AM
Business Wire
Xcel Energy Inc. (NASDAQ: XEL) (Xcel Energy) announced today the
closing of its registered underwritten offering of 18,320,610
shares of its common stock in connection with the forward sale
agreements described below. Barclays and BofA Securities acted as
joint lead book-running managers for the offering. Citigroup and
Wells Fargo Securities acted as joint book-running managers for the
offering.
The closing will result in approximately $1.18 billion of net
proceeds, before expenses (assuming each forward sale agreement is
physically settled based on the initial forward sale price per
share of $64.4356, as described more fully below).
In connection with the offering, Xcel Energy entered into
separate forward sale agreements with each of Barclays Bank PLC and
Bank of America, N.A. (in such capacity, the forward purchasers)
under which Xcel Energy agreed to issue and sell to the forward
purchasers an aggregate of 18,320,610 shares of its common stock at
the initial forward sale price of $64.4356. In addition, the
underwriters of the offering have been granted a 30-day option to
purchase up to an additional 2,748,091 shares of Xcel Energy’s
common stock upon the same terms. If the underwriters exercise
their option, Xcel Energy may elect to enter into additional
forward sale agreements with the forward purchasers with respect to
the additional shares or to issue and sell such shares directly to
the underwriters.
Settlement of the forward sale agreements is expected to occur
on or prior to June 30, 2026. Upon any physical settlement of each
forward sale agreement, Xcel Energy will issue and deliver to the
relevant forward purchaser shares of Xcel Energy’s common stock in
exchange for cash proceeds per share, based on the initial forward
sale price of $64.4356. The initial forward sale price will be
subject to certain adjustments as provided in the relevant forward
sale agreement. Xcel Energy may, subject to certain conditions,
elect cash settlement or net share settlement for all or a portion
of its rights or obligations under either of the forward sale
agreements.
In connection with the forward sale agreements, the forward
purchasers borrowed from third-party lenders and sold to the
underwriters 18,320,610 shares of Xcel Energy’s common stock at the
close of the offering.
If Xcel Energy elects physical settlement of either of the
forward sale agreements, it presently expects to use the net
proceeds for general corporate purposes, which may include capital
contributions to its utility subsidiaries, acquisitions, and/or
repayment of short-term debt.
The offering was made pursuant to Xcel Energy’s effective shelf
registration statement filed with the Securities and Exchange
Commission (SEC). The prospectus supplement and the accompanying
prospectus related to the offering are available on the SEC’s
website at www.sec.gov. Copies of the prospectus supplement and the
accompanying prospectus relating to the offering may be obtained
from the joint lead book-running managers for the offering:
Barclays Capital Inc. c/o Broadridge Financial Solutions 1155
Long Island Avenue Edgewood, NY 11717
Barclaysprospectus@broadridge.com (888) 603-5847
BofA Securities NC1-022-02-25 201 North Tryon Street Charlotte,
NC 28255-0001 Attn: Prospectus Department| Email:
dg.prospectus_requests@bofa.com
This press release does not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which the
offer, solicitation or sale of these securities would be unlawful
prior to registration or qualification under the securities laws of
any jurisdiction. The offering of these securities will be made
only by means of a prospectus and a related prospectus supplement
meeting the requirements of Section 10 of the Securities Act of
1933, as amended.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers
millions of homes and businesses across eight Western and
Midwestern states. Headquartered in Minneapolis, the company is an
industry leader in responsibly reducing carbon emissions and
producing and delivering clean energy solutions from a variety of
renewable sources at competitive prices.
This press release contains forward-looking statements
regarding, among other things, Xcel Energy’s expectations regarding
its offer and sale of common stock and the use of the net proceeds
therefrom. Forward-looking statements are based on current beliefs
and expectations and are subject to inherent risks and
uncertainties, including those discussed under the caption “Special
Note Regarding Forward-Looking Statements” in the prospectus
supplement. In addition, Xcel Energy management retains broad
discretion with respect to the allocation of net proceeds of the
offering. The forward-looking statements speak only as the date of
release, and Xcel Energy is under no obligation to, and expressly
disclaims any such obligation to update or alter its
forward-looking statements, whether as the result of new
information, future events or otherwise, except as may be required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20241105608233/en/
For more information, contact: Paul Johnson, Vice President,
Treasury & Investor Relations (612) 215-4535 Roopesh Aggarwal,
Senior Director - Investor Relations (303) 571-2855
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