8-KOther Events

XCEL ENERGY INC 8-K Report (Nov 27, 2002)

Filed November 27, 2002For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) filed an 8-K on November 27, 2002, detailing significant financing activities. On November 21, 2002, the company successfully closed a private placement of $230 million in 7.5% convertible senior notes due in 2007. These notes were issued at a 25% premium to the stock's closing price on November 19, 2002, indicating favorable market reception or strategic debt management. A key outcome of this new issuance was the redemption of $100 million of the company's 8% convertible senior notes, which were originally issued on November 8, 2002. This strategic move suggests Xcel Energy is optimizing its debt structure by replacing higher-cost debt with lower-cost, longer-term financing. Investors should note the private placement nature of the new notes and review the associated indenture and registration rights agreement for detailed terms and conditions.

Key Highlights

  • 1Xcel Energy closed a $230 million private placement of 7.5% convertible senior notes due 2007 on November 21, 2002.
  • 2The new notes carry an annual interest rate of 7.5% and mature in 2007.
  • 3The conversion price for the new notes is $12.33 per share, representing a 25% premium over the stock's closing price of $9.86 on November 19, 2002.
  • 4A portion of the proceeds was used to redeem $100 million of 8% convertible senior notes originally issued on November 8, 2002.
  • 5The redemption of the 8% notes occurred on November 25, 2002.
  • 6The issuance was conducted as a private placement, exempt from registration under the Securities Act of 1933.
  • 7Key supporting documents, including the Indenture, Registration Rights Agreement, and Redemption Agreement, are attached as exhibits.

Frequently Asked Questions

This Form 8-K reports on Xcel Energy's financing activities, specifically the closing of a $230 million private placement of 7.5% convertible senior notes and the subsequent redemption of a portion of its 8% convertible senior notes.

Xcel Energy likely issued the new 7.5% notes to refinance existing debt. By redeeming $100 million of 8% notes with proceeds from the new 7.5% notes, the company is reducing its overall interest expense and potentially extending its debt maturity profile.

The notes bear a 7.5% annual interest rate, mature in 2007, and are convertible into Xcel Energy common stock at a price of $12.33 per share. This conversion price was set at a 25% premium to the stock's closing price on November 19, 2002.

No, the 7.5% convertible senior notes were issued in a private placement transaction, meaning they were not registered with the SEC for public sale.