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