Skip to content
AnalystLens

XCEL ENERGY INC 8-K Report, Material Agreement (Aug 25, 2006)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed August 25, 2006
Period End
August 23, 2006
Securities
XELXELLL
In the record · 2016–202610-K1110-Q328-K247

XEL filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 247 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed August 25, 2006. Cited figures are marked; the original filing is the authoritative source.

Xcel Energy Inc.'s wholly-owned subsidiary, Southwestern Public Service Company (SPS), entered into a $350 milliona unsecured interim credit agreement on August 23, 2006.

This facility is designed to provide bridge financing, primarily to help SPS manage maturing long-term debt. The agreement expires on November 1, 2006, with any borrowings due by December 29, 2006. Currently, there are no outstanding borrowings under this facility.

This short-term credit line offers flexibility for SPS while it potentially refinances its existing debt obligations. Investors should note that the terms, including interest rates and commitment fees, are tied to SPS's senior unsecured credit ratings.

02—Key points

Key Highlights

  1. Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, secured a $350 million unsecured interim credit agreement.
  2. The agreement is intended to provide bridge financing for maturing long-term debt at SPS.
  3. The credit facility has a term expiring on November 1, 2006, with all borrowings due by December 29, 2006.
  4. No borrowings are currently outstanding under this new credit agreement.
  5. Interest rates are based on the Eurodollar rate plus a margin or an alternate base rate, with rates and fees linked to SPS's credit ratings.
  6. The agreement includes a financial covenant limiting the debt to total capitalization ratio to 65% or less.
  7. The credit agreement contains covenants restricting certain corporate actions like mergers, asset sales, and affiliate transactions.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this new credit agreement for Xcel Energy's subsidiary?

    The primary purpose of the $350 million credit agreement is to provide bridge financing for Southwestern Public Service Company (SPS) to manage its maturing long-term debt. It offers a temporary funding source to ensure financial stability while SPS potentially refinances its existing obligations.

  2. What are the key terms and conditions of the credit agreement?

    The agreement is for $350 million, is unsecured, and has a short-term nature, expiring in November 2006 with a December 2006 maturity for any borrowings. Interest rates are variable, based on the Eurodollar rate or an alternate base rate plus a margin, and commitment fees are also applicable. The terms are influenced by SPS's credit ratings. It includes a debt-to-capitalization ratio covenant of 65% and other operational restrictions.

  3. Are there any outstanding borrowings under this new credit agreement?

    No, as of the filing date (August 23, 2006), there are no borrowings outstanding under this $350 million interim credit agreement.

  4. What are the implications for investors regarding this credit agreement?

    This filing indicates proactive financial management by Xcel Energy's subsidiary to address upcoming debt maturities. The short-term nature of the facility and its reliance on credit ratings suggest that investors should monitor SPS's creditworthiness and Xcel Energy's overall debt management strategy. The covenants provide some assurance regarding financial discipline.

04—Continue

← View all 8-K filings