MINNEAPOLIS--(BUSINESS WIRE)--
Xcel Energy Inc. (NASDAQ: XEL) (Xcel Energy) announced today the
commencement of a registered underwritten offering of $400 million of
shares of its common stock. Subject to certain conditions, all shares
are expected to be borrowed by the forward purchaser (as defined below)
(or its affiliate) from third parties and sold to the underwriters and
offered in connection with the forward sale agreement described below.
Morgan Stanley and Wells Fargo Securities are acting as joint
book-running managers for this offering. The underwriters may offer
shares of Xcel Energy’s common stock in transactions on the Nasdaq Stock
Market LLC, in the over-the-counter market, through negotiated
transactions or otherwise at either market prices, at prices related to
market prices or at negotiated prices.
In connection with the offering, Xcel Energy expects to enter into a
forward sale agreement with Morgan Stanley & Co. LLC (the forward
purchaser) under which Xcel Energy will agree to issue and sell to the
forward purchaser an aggregate of $400 million of shares of its common
stock at an initial forward sale price per share equal to the price per
share at which the underwriters purchase the shares in the offering,
subject to certain adjustments, upon physical settlement of the forward
sale agreement. In addition, the underwriters of the offering expect to
be granted a 30-day option to purchase up to an additional $60 million
of shares of Xcel Energy’s common stock upon the same terms. If the
underwriters exercise their option, Xcel Energy may elect to enter into
an additional forward sale agreement with the forward purchaser with
respect to the additional shares or to issue and sell such shares
directly to the underwriters.
Settlement of the forward sale agreement is expected to occur no later
than February 2020. Xcel Energy may, subject to certain conditions,
elect cash settlement or net share settlement for all or a portion of
its rights or obligations under the forward sale agreement.
If Xcel Energy elects physical settlement of the forward sale agreement,
it expects to use the net proceeds for general corporate purposes, which
may include capital contributions to its utility subsidiaries,
acquisitions, and/or, repayment of commercial paper, outstanding loans
under its revolving credit facility or other debt.
The offering is being made pursuant to Xcel Energy’s effective shelf
registration statement with the Securities and Exchange Commission
(SEC). The preliminary prospectus supplement and the accompanying
prospectus related to the offering will be available on the SEC’s
website at www.sec.gov.
Copies of the preliminary prospectus supplement and the accompanying
prospectus relating to the offering may be obtained from the joint
book-running managers for the offering:
Morgan Stanley & Co. LLC
180 Varick St., 2nd Floor
New
York, New York 10014
Attn: Prospectus Department
Wells Fargo Securities, LLC
375 Park Avenue
New York, New York
10152
Attn: Equity Syndicate Department
Telephone: (800)
326-5897
Email: cmclientsupport@wellsfargo.com
This press release 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 the offer,
solicitation or sale of these securities would be unlawful prior to
registration or qualification under the securities laws of any
jurisdiction. The offering of these securities will be made only by
means of a prospectus and a related prospectus supplement meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of
homes and businesses across eight Western and Midwestern states.
Headquartered in Minneapolis, the company is an industry leader in
responsibly reducing carbon emissions and producing and delivering clean
energy solutions from a variety of renewable sources at competitive
prices.
This press release contains forward-looking statements regarding, among
other things, Xcel Energy’s expectations regarding its planned offer and
sale of common stock and the use of the net proceeds from any such sale.
Xcel Energy cannot be sure that we will complete the offering or, if it
does, on what terms we will complete it. Forward-looking statements are
based on current beliefs and expectations and are subject to inherent
risks and uncertainties, including those discussed under the caption
“Forward-Looking Statements” in the prospectus supplement. In addition,
Xcel Energy management retains broad discretion with respect to the
allocation of net proceeds of the planned offering. The forward-looking
statements speak only as the date of release, and Xcel Energy is under
no obligation to, and expressly disclaims any such obligation to update
or alter its forward-looking statements, whether as the result of new
information, future events or otherwise, except as may be required by
law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005901/en/
Xcel Energy
Paul Johnson, 612-215-4535
VP Investor Relations
www.xcelenergy.com
Source: Xcel Energy Inc.