Xcel Energy Announces Redemption of Outstanding 2.60% Senior Notes, Series due March 15, 2022

Rhea-AI Summary

Xcel Energy Inc. (NASDAQ: XEL) announced the submission of a redemption notice to redeem all outstanding 2.60% Senior Notes, Series due March 15, 2022, on December 1, 2020. The aggregate principal amount outstanding is $300 million. The redemption price will be the greater of the principal amount or a make-whole premium, plus accrued interest. This announcement serves as an advisory, and holders of the Notes will receive a formal notice from Wells Fargo Bank, the trustee. Forward-looking statements indicate potential risks affecting the redemption.

Positive

• Plan to redeem 2.60% Senior Notes indicates financial management and strategic planning.
• Reduction of debt with $300 million in Senior Notes potentially strengthens balance sheet.

Negative

• Redemption may incur make-whole premium costs, impacting cash flow.

MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy Inc. (NASDAQ: XEL) announced today that it has submitted a redemption notice to the trustee to redeem all of its outstanding 2.60% Senior Notes, Series due March 15, 2022 (Notes) on December 1, 2020, (Redemption Date). The redemption price is equal to the greater of the outstanding principal amount of the Notes and a make-whole premium, which will be calculated three business days prior to the Redemption Date in accordance with the terms of the Notes and related indenture, plus accrued and unpaid interest to the Redemption Date. The aggregate principal amount of Notes currently outstanding is $300,000,000.

This press release does not constitute a notice of redemption of the Notes. Holders of the Notes should refer to the notice of redemption to be delivered to the registered holders of the Notes by Wells Fargo Bank, N.A., the trustee with respect to the Notes.

This press release is not an offer to sell or a solicitation of an offer to buy any securities.

Forward Looking Statements

This release contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include the company’s plan to redeem the Notes. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry: competitive factors; unusual weather; effects of geopolitical events; including war and acts of terrorism; changes in federal or state legislation; regulation; actions of regulatory bodies; and other risk factors listed from time to time by Xcel Energy in its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 (including the items described under Factors Affecting Results of Operations) and the other risk factors listed from time to time by Xcel Energy Inc. in reports filed with the SEC.

About Xcel Energy Inc.

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. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.