MINNEAPOLIS--(BUSINESS WIRE)--
Xcel Energy Inc. (NYSE: XEL) subsidiary Southwestern Public Service
Company (SPS) today announced that it closed an offering of $200.0
million in aggregate principal amount of its 4.50% first mortgage bonds
due August 15, 2041 (the Bonds). The Bonds are redeemable at any time
subject to certain “make whole” provisions prior to February 15, 2041.
On and after this date, the Bonds are callable at par.
SPS intends to use a portion of the net proceeds from the sale of the
Bonds to repay short-term debt borrowings incurred to fund its daily
operational needs and to redeem $57.3 million of its outstanding 5.75%
Pollution Control Revenue Refunding Bonds due September 1, 2016. The
balance of the net proceeds will be used for general corporate purposes.
Citigroup Global Markets Inc., Scotia Capital (USA) Inc., and U.S.
Bancorp Investments, Inc., acted as joint book-running managers for the
offering.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy these securities nor shall there be any
sale of these securities in any jurisdiction in which an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. The
offering is being made only by means of a prospectus and related
prospectus supplement. A prospectus supplement related to the offering
has been filed with the Securities and Exchange Commission. Copies of
the prospectus supplement and accompanying prospectus for the offering
may be obtained on the Securities and Exchange Commission’s website at www.sec.gov.
Alternatively, any underwriter or dealer participating in the offering
will send you the prospectus if you request it by calling (i) Citigroup
Global Markets Inc., toll free at 1-877-858-5407, (ii) Scotia Capital
(USA) Inc., toll free at 1-800-372-3930, and (iii) U.S. Bancorp
Investments, Inc., toll free at 1-877-558-2607.
This announcement contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that reflect
management’s current views with respect to future events, based on what
SPS believes are reasonable assumptions. No assurance can be given,
however, that these events will occur, including the closing of the
above mentioned offering. Such forward-looking statements are intended
to be identified in this document by the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,”
“project,” “possible,” “potential,” “should” and similar expressions.
Actual results may vary materially. Factors that could cause actual
results to differ materially include, but are not limited to: general
economic conditions, including the availability of credit and its impact
on capital expenditures and the ability of SPS to obtain financing on
favorable terms; business conditions in the energy industry; including
the risk of a slow down in the U.S. economy or delay in growth recovery;
trade, fiscal, taxation and environmental policies in areas where SPS
has a financial interest; customer business conditions; actions of
credit rating agencies; competitive factors, including the extent and
timing of the entry of additional competition in the markets served by
SPS; unusual weather; effects of geopolitical events, including war and
acts of terrorism; state, federal and foreign legislative and regulatory
initiatives that affect cost and investment recovery, have an impact on
rates or have an impact on asset operation or ownership or impose
environmental compliance conditions; structures that affect the speed
and degree to which competition enters the electric market; costs and
other effects of legal and administrative proceedings, settlements,
investigations and claims; financial or regulatory accounting policies
imposed by regulatory bodies; availability of cost of capital; employee
work force factors and the other risk factors listed from time to time
by SPS in reports filed with the Securities and Exchange Commission
(SEC), including Risk Factors in Item 1A and Exhibit 99.01 of SPS’
Annual Report on Form 10-K for the year ended December 31, 2010 and on
SPS’ Quarterly Reports on Form 10-Q for the quarters ended March 31,
2011 and June 30, 2011. SPS assumes no obligation to update any
forward-looking information contained in this news release.
Source: Xcel Energy
Contact:
Xcel Energy
Financial analysts:
Paul Johnson, 612-215-4535
Managing
Director, Investor Relations & Assistant Treasurer
or
News
media inquiries:
Xcel Energy Media Relations, 612-215-5300