Xcel Energy Announces Closing of Common Stock Offering with a Forward Component
Xcel Energy (NASDAQ: XEL) announced the closing of its registered underwritten offering of 18,320,610 shares of common stock, resulting in approximately $1.18 billion in net proceeds. The company entered into forward sale agreements with Barclays Bank PLC and Bank of America at an initial forward sale price of $64.4356 per share. The underwriters have a 30-day option to purchase up to an additional 2,748,091 shares. Settlement is expected by June 30, 2026. The proceeds will be used for general corporate purposes, including capital contributions to utility subsidiaries, acquisitions, and/or short-term debt repayment.
Xcel Energy (NASDAQ: XEL) ha annunciato la chiusura della sua offerta registrata e sottoscritta di 18.320.610 azioni di azioni ordinarie, con un incasso netto di circa 1,18 miliardi di dollari. L'azienda ha stipulato accordi di vendita anticipata con Barclays Bank PLC e Bank of America a un prezzo iniziale di vendita di 64,4356 dollari per azione. Gli underwriter hanno un'opzione di 30 giorni per acquistare fino a ulteriori 2.748.091 azioni. La liquidazione è prevista entro il 30 giugno 2026. I proventi saranno utilizzati per scopi aziendali generali, inclusi contributi di capitale alle sussidiarie di pubblica utilità, acquisizioni e/o rimborso di debiti a breve termine.
Xcel Energy (NASDAQ: XEL) anunció el cierre de su oferta registrada y suscrita de 18,320,610 acciones de acciones ordinarias, resultando en aproximadamente $1.18 mil millones en ingresos netos. La compañía celebró acuerdos de venta a plazo con Barclays Bank PLC y Bank of America a un precio inicial de venta a plazo de $64.4356 por acción. Los suscriptores tienen una opción de 30 días para comprar hasta 2,748,091 acciones adicionales. Se espera que la liquidación se realice antes del 30 de junio de 2026. Los ingresos se utilizarán para propósitos corporativos generales, incluidos aportes de capital a subsidiarias de servicios públicos, adquisiciones y/o reembolso de deudas a corto plazo.
Xcel Energy (NASDAQ: XEL)는 18,320,610주의 보통주에 대한 등록된 인수 제안의 종료를 발표하였으며, 이는 약 11억 8천만 달러의 순수익을 초래합니다. 회사는 Barclays Bank PLC 및 Bank of America와 주당 64.4356달러의 초기 판매 가격으로 선매도 계약을 체결했습니다. 인수자는 추가로 최대 2,748,091주를 구매할 수 있는 30일 옵션을 보유하고 있습니다. 결제는 2026년 6월 30일까지 예정되어 있습니다. 수익금은 공익 자회사에 대한 자본 기여, 인수 및/또는 단기 부채 상환 등을 포함한 일반 기업 목적에 사용될 것입니다.
Xcel Energy (NASDAQ: XEL) a annoncé la clôture de son offre enregistrée souscrite de 18 320 610 actions ordinaires, ce qui a généré environ 1,18 milliard de dollars de produits nets. L'entreprise a conclu des accords de vente à terme avec Barclays Bank PLC et Bank of America à un prix de vente initial de 64,4356 dollars par action. Les souscripteurs disposent d'une option de 30 jours pour acheter jusqu'à 2 748 091 actions supplémentaires. Le règlement est prévu d'ici le 30 juin 2026. Les produits seront utilisés à des fins d'entreprise générales, y compris des contributions en capital aux filiales de services publics, des acquisitions et/ou le remboursement de dettes à court terme.
Xcel Energy (NASDAQ: XEL) gab bekannt, dass die registrierte, garantierte Emission von 18.320.610 Aktien von Stammaktien abgeschlossen wurde, was zu einem Nettoumsatz von etwa 1,18 Milliarden Dollar führte. Das Unternehmen hat Vorverkaufsverträge mit Barclays Bank PLC und Bank of America zu einem anfänglichen Vorverkaufspreis von 64,4356 Dollar pro Aktie abgeschlossen. Die Platzierungsbanken haben eine 30-Tage-Option, bis zu 2.748.091 weitere Aktien zu kaufen. Die Abwicklung wird bis zum 30. Juni 2026 erwartet. Die Erlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich Kapitalbeiträgen an Tochtergesellschaften von Versorgungsunternehmen, Akquisitionen und/oder Rückzahlung von kurzfristigen Schulden.
- Secured $1.18 billion in net proceeds from stock offering
- Flexible settlement options until June 30, 2026
- Additional potential proceeds from 30-day option for 2.7M shares
- Potential shareholder dilution from 18.3M new shares
- Forward sale price subject to adjustments
Insights
This significant
The deal's structure through major banks (Barclays and BofA) as forward purchasers adds credibility and reduces execution risk. The additional 30-day option for 2.74 million shares provides upside potential. The flexible settlement terms (physical, cash, or net share) and extended settlement window until 2026 give XEL significant operational and strategic flexibility in managing its capital structure.
This capital raise aligns with typical utility sector financing needs for infrastructure investment and regulatory compliance. The intended use for general corporate purposes, including utility subsidiary capital contributions, suggests ongoing investment in grid modernization and clean energy transition projects. The timing and size indicate XEL's confidence in its investment pipeline and regulatory environment.
The forward sale structure is particularly advantageous in the current high interest rate environment, potentially offering better terms than traditional debt financing. This equity raise strengthens XEL's balance sheet while maintaining financial flexibility for future capital expenditures and acquisitions.
The closing will result in approximately
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
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
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
Barclaysprospectus@broadridge.com
(888) 603-5847
BofA Securities
NC1-022-02-25
201 North Tryon Street
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
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.
View source 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
Source: Xcel Energy
FAQ
How many shares did Xcel Energy (XEL) offer in its 2024 common stock offering?
What is the initial forward sale price for Xcel Energy's (XEL) 2024 stock offering?
When is the settlement deadline for Xcel Energy's (XEL) forward sale agreements?
How will Xcel Energy (XEL) use the proceeds from its 2024 stock offering?
