01—Abstract
Summary
Summary of the 8-K filed June 8, 2006. Cited figures are marked; the original filing is the authoritative source.
Xcel Energy Inc. (XEL) filed an 8-K on June 8, 2006, to report a significant financing event.
On June 6, 2006, the company entered into an Underwriting Agreement to issue and sell $300 milliona in aggregate principal amount of its 6.50% Senior Notes, due in 2036. This offering was made through underwriters including Goldman, Sachs & Co., Lehman Brothers Inc., and Morgan Stanley & Co. Incorporated. This filing indicates Xcel Energy's proactive management of its debt structure and capital raising activities.
The issuance of these long-term senior notes provides the company with substantial funding, likely to support ongoing operations, capital expenditures, or debt refinancing. Investors should note the specific terms of the notes, including the 6.50%b interest rate and the 30-year maturity, which reflect the prevailing market conditions and Xcel Energy's credit profile at the time of issuance.
02—Key points
Key Highlights
- Xcel Energy Inc. issued $300 million in aggregate principal amount of 6.50% Senior Notes, Series due 2036.
- The issuance occurred on June 6, 2006, with the filing made on June 8, 2006.
- The Underwriting Agreement was made with prominent financial institutions: Goldman, Sachs & Co., Lehman Brothers Inc., and Morgan Stanley & Co. Incorporated.
- A Supplemental Indenture was executed with Wells Fargo Bank, National Association as Trustee for the Series 2036 Senior Notes.
- The filing serves to report a material definitive agreement and the creation of a direct financial obligation for the company.
- The company also included an opinion of Gary R. Johnson regarding the validity of the securities.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
This 8-K filing reports on Xcel Energy Inc.'s entry into a material definitive agreement and the creation of a direct financial obligation through the issuance of $300 million in 6.50% Senior Notes due 2036.
What are the key terms of the Senior Notes being issued?
The Senior Notes have an aggregate principal amount of $300 million, carry a coupon rate of 6.50%, and mature in 2036.
Who were the main parties involved in this debt offering?
Xcel Energy Inc. was the issuer. The notes were underwritten by Goldman, Sachs & Co., Lehman Brothers Inc., and Morgan Stanley & Co. Incorporated. Wells Fargo Bank, National Association acted as the Trustee for the notes.
What does this debt issuance imply for Xcel Energy Inc.'s financial position?
The issuance of $300 million in long-term debt indicates Xcel Energy's strategy to raise capital, potentially for funding operations, capital expenditures, refinancing existing debt, or strengthening its balance sheet. The 6.50% interest rate reflects the cost of borrowing at that time.
04—Continue