8-KOther Events

XCEL ENERGY INC 8-K Report (Nov 12, 2002)

Filed November 12, 2002For Securities:XELXELLL

Summary

This 8-K filing from Xcel Energy Inc. (XEL) on November 12, 2002, details a significant financing event. On November 8, 2002, Xcel Energy successfully raised $100 million through a private placement of 8% senior convertible debt securities with institutional investors. These securities are convertible into Xcel Energy's common stock. The primary purpose of this capital infusion was to repay a 364-day line of credit that matured on the same day. Additionally, the securities purchase agreement includes provisions for potential future financings of up to $250 million, indicating a strategy to bolster liquidity and manage its debt obligations. Investors should note the attached exhibits for detailed terms of the transaction and any potential future financings.

Key Highlights

  • 1Xcel Energy raised $100 million via a private placement of 8% senior convertible debt on November 8, 2002.
  • 2The debt is convertible into Xcel Energy common stock.
  • 3Proceeds were used to pay down a maturing 364-day line of credit.
  • 4The agreement allows for potential future financings of up to $250 million.
  • 5This transaction aimed to improve the company's liquidity position.
  • 6The filing includes the Securities Purchase Agreement and related registration rights documents as exhibits.

Frequently Asked Questions

The $100 million raised through the sale of convertible debt was primarily used to pay down a 364-day line of credit that matured on November 8, 2002, thereby managing short-term debt obligations and improving liquidity.

Yes, the debt is convertible into Xcel Energy common stock. If investors choose to convert their debt, it could lead to dilution of existing shareholders' equity and an increase in the total number of outstanding shares.

Yes, the securities purchase agreement includes provisions for potential additional financings of up to $250 million, offering Xcel Energy flexibility for future capital needs.

Detailed terms of the transaction, including the securities purchase agreement, forms of convertible notes, and the registration rights agreement, are provided as exhibits to this Form 8-K filing.