Summary
Xcel Energy Inc. (XEL) announced on August 30, 2019, the settlement of its equity forward agreements entered into in November 2018. These agreements were related to a public offering of 9.36 million shares of Xcel Energy common stock, which included an over-allotment option. The settlement involved Xcel Energy physically delivering these 9.36 million shares and, in return, receiving cash proceeds of $453.1 million.
Key Highlights
- 1Xcel Energy settled equity forward agreements on August 29, 2019.
- 2The settlement involved the physical delivery of 9.36 million shares of Xcel Energy common stock.
- 3The company received cash proceeds of $453.1 million from the settlement.
- 4These agreements were initially established in November 2018 in connection with a public offering.
- 5The forward price for cash proceeds was determined based on the November 2018 offering price, adjusted per the agreements.
Frequently Asked Questions
The equity forward agreements were financial contracts entered into in November 2018 related to a public offering of 9.36 million shares of Xcel Energy's common stock. They gave Xcel Energy the option to settle the obligation through physical share delivery, cash, or a combination.
Xcel Energy elected to physically deliver the 9.36 million shares of common equity under the agreements. In exchange, the company received cash proceeds.
Xcel Energy received cash proceeds totaling $453.1 million from the settlement of the equity forward agreements.
The forward price used to calculate the cash proceeds was based on the November 2018 public offering price of Xcel Energy's common stock, with adjustments made according to the terms of the equity forward agreements.