Financing ·
Prices $2.2B of 2.625% convertible senior notes due 2027 with option for extra $300M
XELXcel Energy Inc
Xcel Energy priced an upsized offering of $2,200,000,000 in aggregate principal amount of 2.625% Convertible Senior Notes due 2027 in a private placement to qualified institutional buyers under Rule 144A. The initial purchasers were granted an option to buy up to an additional $300,000,000 of notes within 13 days of issuance. Net proceeds are expected to be approximately $2,178,500,000, or $2,476,250,000 if the option is exercised in full. The company intends to use the net proceeds to repay short-term borrowings, including commercial paper and a 364-day delayed draw term loan, for general corporate purposes. The notes bear interest semiannually at 2.625%, mature on December 15, 2027, and carry an initial conversion price of approximately $87.26 per share. Xcel Energy is a leading energy provider generating and distributing electricity and gas across eight states.