Summary
Xcel Energy Inc. (XEL) announced on February 18, 2021, the execution of a $1.2 billion 364-day term loan agreement. This facility, maturing on February 17, 2022, with an option for a one-year extension, was fully drawn to fund general corporate operations. The unsecured loan has provisions for interest calculations based on either the Eurodollar rate or an alternate base rate, with a margin of 60.0 basis points for the Eurodollar rate. This financing arrangement includes a key financial covenant requiring Xcel Energy to maintain a consolidated funded debt to total capitalization ratio at or below 65 percent. While the agreement contains standard covenants related to mergers, consolidations, and asset sales, investors should note the potential for acceleration upon certain events of default. The company has also incorporated an Interactive Data File for enhanced transparency.
Key Highlights
- 1Execution of a $1.2 billion 364-day unsecured term loan facility.
- 2The loan was fully drawn to finance general corporate operations.
- 3Maturity date is February 17, 2022, with a potential one-year extension.
- 4Interest rate options include Eurodollar rate (plus 60 bps margin) or an alternate base rate.
- 5Key financial covenant: consolidated funded debt to total capitalization ratio <= 65%.
- 6Includes standard covenants regarding mergers, consolidations, and asset sales.
- 7Subject to acceleration upon specified events of default.