Summary
Xcel Energy Inc. (XEL) reported on August 2, 2012, through an 8-K filing, that it and its key wholly-owned subsidiaries (Northern States Power Company - Minnesota and Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Company) have entered into amended and restated credit agreements. These new facilities, effective July 27, 2012, replace existing credit lines that were set to mature in March 2015. The primary purpose of these agreements is to ensure continued access to liquidity for general corporate purposes, including debt repayment and supporting letters of credit. The aggregate amount available under these facilities remains unchanged, totaling $2.45 billion across the parent company and its subsidiaries, with options for up to $350 million in increases under certain conditions. The extension of these credit lines to a five-year term, with potential for further one-year extensions, signals the company's proactive approach to maintaining a stable financial foundation and operational flexibility.
Key Highlights
- 1Xcel Energy and its major subsidiaries have entered into new, amended, and restated credit agreements, extending their liquidity sources.
- 2The total available credit capacity remains $2.45 billion, with potential for an additional $350 million in increases.
- 3The new facilities have a five-year term, providing a stable financing runway through July 2017.
- 4Maturity extension options are available for most of the credit facilities, offering further flexibility.
- 5Borrowings are available at Eurodollar or alternate base rates, plus a margin that varies based on credit ratings.
- 6A key financial covenant requires consolidated funded debt to total capitalization to be 65% or less.
- 7The credit agreements include standard covenants restricting mergers, asset sales, liens, and affiliate transactions.