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Highlights
Xcel Energy Inc. has initiated a registered underwritten offering of $1.2 billion in common stock.
The offering involves forward sale agreements with Barclays Bank PLC and Bank of America, N.A. for future issuance of shares.
Proceeds from the offering are intended for general corporate purposes, including capital contributions to utility subsidiaries and debt repayment.
Xcel Energy Inc. (NASDAQ:XEL) has announced the commencement of a registered underwritten offering of $1.2 billion of its common stock. This transaction is subject to specific conditions, with all shares anticipated to be borrowed by the forward purchasers from third parties and subsequently sold to underwriters. The joint book-running managers for this offering are Barclays and BofA Securities, who will facilitate the sale through various channels, including the Nasdaq Stock Market and over-the-counter transactions.
In conjunction with the offering, Xcel Energy plans to enter into forward sale agreements with Barclays Bank PLC and Bank of America, N.A. Under these agreements, Xcel Energy will sell shares of its common stock to the forward purchasers at an initial forward sale price, which will be determined based on the underwriters' purchase price. Additionally, the underwriters will have a 30-day option to acquire up to an additional $180 million of shares on the same terms.
The settlement of these forward sale agreements is anticipated to occur by June 30, 2026. Xcel Energy retains the option for cash or net share settlement for its obligations under the agreements. If physical settlement occurs, the company intends to utilize the net proceeds for various corporate purposes, which may include investments in its utility subsidiaries and the repayment of short-term debt.
This offering is conducted under Xcel Energy’s effective shelf registration statement filed with the Securities and Exchange Commission (SEC). The preliminary prospectus supplement and accompanying prospectus will be accessible on the SEC’s website. This press release does not constitute an offer to sell or a solicitation of offers to purchase the securities, and any sale will only occur through a prospectus that meets the requirements of the Securities Act of 1933.
