Summary
Xcel Energy Inc. (XEL) announced on December 10, 2018, through an 8-K filing, the execution of an Amended and Restated 364-Day Term Loan Agreement. This agreement effectively extends the maturity of $250 million in existing loans and provides the company with the ability to borrow an additional $250 million, bringing the total commitment to $500 million. This facility is intended for general corporate purposes, including potential refinancing of existing debt. The new facility is unsecured and has an initial maturity of 364 days, maturing on December 3, 2019, with an option for a one-year extension to December 2, 2020, subject to lender consent. A key financial covenant requires Xcel Energy to maintain a consolidated funded debt to total capitalization ratio of less than or equal to 65%. The agreement also includes standard covenants restricting mergers, asset sales, and the incurrence of liens, with acceleration clauses triggered by events of default such as cross-defaults, change of control, and significant judgment non-payments.
Key Highlights
- 1Xcel Energy entered into an Amended and Restated 364-Day Term Loan Agreement on December 4, 2018.
- 2The agreement extends the maturity of $250 million in existing loans and allows for an additional $250 million in borrowings, totaling a $500 million commitment.
- 3The facility is unsecured and has an initial maturity of 364 days, ending December 3, 2019.
- 4There is an option for a one-year extension to December 2, 2020, subject to lender approval.
- 5Funds are designated for general corporate purposes, including potential debt refinancing.
- 6A key financial covenant requires a consolidated funded debt to total capitalization ratio of 65% or less.
- 7Standard covenants regarding mergers, asset sales, liens, and events of default are included.