Xcel Energy Enhances Cash Tender Offers for First Mortgage Bonds

Xcel Energy Advances Cash Tender Offers for Bonds

Xcel Energy Inc. (NASDAQ: XEL) has made headlines recently by announcing the early results of its cash tender offers for certain first mortgage bonds issued by Northern States Power Company. This initiative allows bondholders to exchange their bonds for cash when they meet predetermined conditions. The company aims to purchase bonds up to a revised Aggregate Tender Cap of $110,000,000, reflecting its ongoing commitment to financial management and corporate responsibility.

Understanding the Tender Offers Details

The cash tender offers, referred to as the Tender Offers, focus on specific mortgage bonds that Northern States Power Company has issued. If eligible bondholders decide to participate, they can expect to receive a comprehensive proposal that outlines the conditions of the offer. Xcel Energy specified that even though they may adjust the Aggregate Tender Cap based on market conditions, they primarily anticipate purchasing only the 2051 Bonds – a specific series within the total offerings.

Bond Information at a Glance

Regarding the tender offers, Xcel Energy has put together crucial details regarding individual bond offerings. For instance, one notable bond is the 2.60% First Mortgage Bonds, Series due June 1, 2051. The company is ready to accept a significant principal amount tendered for these bonds. Specifically, a total of $440,456,000 has been tendered for these securities, which highlights the strong interest from current bondholders in this time-sensitive offer.

Summary of Bond Offerings

Here's a brief overview of some key bond offerings from Xcel Energy:

• 2.60% First Mortgage Bonds due June 1, 2051 – CUSIP 665772 CS6
• 2.90% First Mortgage Bonds due March 1, 2050 – CUSIP 665772 CR8
• 3.20% First Mortgage Bonds due April 1, 2052 – CUSIP 665772 CU1

Process of Accepting Bonds

Bondholders wishing to partake in the tender offer must ensure their bonds are validly tendered by the early submission cutoff. Accepted bonds will enable holders to receive a Total Consideration that includes an early tender payment of $30 per $1,000 in principal, further incentivizing participation. Xcel Energy is prepared to announce the final determinations regarding the bonds' total consideration after consulting the market conditions and bond-specific rates.

Settlement and Withdrawals

The overall process culminates in a pre-specified settlement date after the evaluation period. For holders looking for flexibility, it's important to note that they can't withdraw their tendered bonds after a specific cutoff unless under special circumstances, which highlights the need for careful evaluation before participating.

Xcel Energy's Future Plans

As the tender offers progress, Xcel Energy has no intentions of halting its strategic plans. Following the tender offers, it may engage in further bond purchases in the open market. This action is consistent with the company’s approach to manage its debt portfolio effectively.

About Xcel Energy

Xcel Energy, headquartered in Minneapolis, is a renowned energy provider serving millions of customers across various states. The company is proactive in its approach to reduce carbon emissions and deliver clean energy sourced from renewables, striving to ensure competitive pricing for its services. With a commitment to environmental sustainability, Xcel Energy continues to be a leader in the energy sector.

Frequently Asked Questions

What are the Tender Offers by Xcel Energy?

The Tender Offers refer to Xcel Energy's initiatives to purchase specific mortgage bonds for cash from bondholders, aiming to improve its debt management.

What is the Aggregate Tender Cap?

The Aggregate Tender Cap is set at $110,000,000, allowing Xcel Energy significant flexibility in managing its bond purchases.

Which bonds are primarily being targeted in the offers?

The primary focus is on the 2.60% First Mortgage Bonds Series due June 1, 2051, among others.

How can bondholders participate in the Tender Offers?

Bondholders will need to tender their bonds by the specified early submission deadline to be eligible for the offers.

What are the future plans for Xcel Energy regarding bond purchases?

Xcel Energy plans to continue engaging in open market purchases post-tender offer, enhancing its strategic financial management.

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