Summary
Xcel Energy Inc. (XEL) filed an 8-K on November 29, 2010, to report the settlement of equity forward agreements that were entered into in August 2010. These agreements were connected to a public offering of 21.85 million shares of Xcel Energy common stock, which included an over-allotment of 2.85 million shares. The settlement occurred on November 29, 2010, where Xcel Energy physically delivered the 21.85 million shares of common stock and, in return, received cash proceeds totaling $449.8 million. The pricing for this settlement was based on the August 2010 offering price, adjusted for underwriting fees, a daily adjustment related to the federal funds rate, and a reduction for a common stock dividend paid in October 2010.
Key Highlights
- 1Xcel Energy settled equity forward agreements on November 29, 2010.
- 2The agreements were originally entered into in August 2010 in connection with a public stock offering.
- 3A total of 21.85 million shares of common stock were delivered.
- 4The settlement resulted in Xcel Energy receiving cash proceeds of $449.8 million.
- 5The pricing mechanism for the settlement involved adjustments based on the initial offering price, underwriting fees, federal funds rate, and a dividend payment.
- 6An over-allotment of 2.85 million shares was included in the original agreements.