Summary
Xcel Energy Inc. (XEL) filed an 8-K on April 5, 2007, detailing a significant debt offering. The company entered into Supplemental Indenture No. 4, establishing $253,979,000 in aggregate principal amount of 5.631% Senior Notes due 2017. These notes were issued in connection with an exchange offer for its 7.0% Senior Notes due 2010, effectively extending the maturity profile and lowering the coupon rate on a portion of its debt. The issuance was conducted under Rule 144A and Regulation S, meaning the notes were not registered under the Securities Act of 1933. To address this, Xcel Energy entered into a Registration Rights Agreement, committing to file an exchange offer registration statement. This allows holders of the newly issued notes to exchange them for identical, registered notes, providing liquidity and marketability for investors. The notes are unsecured and rank equally with existing and future unsecured senior indebtedness.
Key Highlights
- 1Xcel Energy issued $253,979,000 in aggregate principal amount of 5.631% Senior Notes due April 1, 2017.
- 2The new notes were issued in exchange for existing 7.0% Senior Notes due 2010, indicating a debt restructuring and extension of maturity.
- 3The notes bear interest at 5.631% per annum, payable semi-annually on April 1 and October 1.
- 4The issuance was made pursuant to exemptions from registration under Rule 144A and Regulation S.
- 5A Registration Rights Agreement was executed, obligating Xcel Energy to file an exchange offer registration statement for the notes.
- 6The new senior notes are unsecured and rank equally with the company's other unsecured senior indebtedness.
- 7The transaction closed on March 30, 2007, with the filing date being April 5, 2007.