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Xcel Energy Inc. (NASDAQ:XEL), a Minnesota-based utility company with a market capitalization of $39.85 billion and a stable dividend yield of 3.25%, announced today the issuance of $1.1 billion in senior notes. The company has maintained dividend payments for an impressive 54 consecutive years, according to InvestingPro data. The offering, dated Monday, includes two series of notes: $350 million at 4.75% due March 21, 2028, and $750 million at 5.60% due April 15, 2035.
The notes were issued under an underwriting agreement with BMO Capital Markets Corp., MUFG Securities Americas Inc., and Wells Fargo (NYSE:WFC) Securities, LLC acting as representatives of the underwriters. The issuance is pursuant to a registration statement on Form S-3 and a prospectus supplement filed with the Securities and Exchange Commission (SEC) on Tuesday.
The proceeds from the notes will be subject to the terms outlined in Xcel Energy’s Indenture, dated December 1, 2000, and further defined by the Supplemental Indenture No. 19, dated today. U.S. Bank Trust Company, National Association, as successor to Computershare Trust Company, N.A., will serve as the trustee for the notes.
The issuance of these notes is part of Xcel Energy’s broader financing strategy, coming at a time when the company’s short-term obligations exceed its liquid assets, with a current ratio of 0.67. The notes will likely be used to support the company’s capital expenditures, refinance existing debt, and for other general corporate purposes. For deeper insights into Xcel’s financial health and debt metrics, InvestingPro subscribers can access comprehensive analysis and over 30 additional financial metrics.
Investors may review the details of the offering and the legal opinion regarding the validity of the notes, which are included as exhibits in the company’s Current Report on Form 8-K filed with the SEC today. The filing also includes interactive data files for the cover page, which are embedded within the Inline XBRL document.
This information is based on a press release statement and provides a factual report on Xcel Energy’s recent financial activity. The company, traded on the Nasdaq Stock Market under the ticker XEL, is a major player in the provision of electric and other services, characterized by low price volatility with a beta of 0.39. Investors seeking detailed valuation analysis and expert insights can access the full InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.
In other recent news, Xcel Energy Inc. announced the issuance of $1 billion in first mortgage bonds through its subsidiary, Public Service Company of Colorado. This financial move aims to manage the company’s capital structure and support ongoing operations. The bonds consist of $400 million due in 2034 and $600 million maturing in 2055, with proceeds expected to be used for general corporate purposes. Xcel Energy also disclosed that its subsidiary, NSP-Minnesota, received approval from the Minnesota Public Utilities Commission for a comprehensive resource plan. This plan includes expanding renewable energy and storage capacity, with significant additions of wind, solar, and battery storage by 2030.
Additionally, Xcel Energy announced a dividend increase to 57 cents per share, marking a 4.1% rise, effective for the dividend payable in April 2025. This decision highlights the company’s confidence in its long-term growth strategy and financial stability. In executive news, Xcel Energy revealed upcoming leadership changes ahead of COO Timothy O’Connor’s retirement, with Scott Sharp (OTC:SHCAY) and Michael Lamb taking on new executive roles. These appointments are part of the company’s strategic succession planning. These developments reflect Xcel Energy’s ongoing efforts to strengthen its financial position, expand its energy portfolio, and ensure robust governance.
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