Xcel Energy Announces Pricing of Common Stock Offering with a Forward Component
Xcel Energy Inc. (NASDAQ: XEL) (Xcel Energy) announced today the pricing of a registered underwritten offering of 18,320,610 shares of its common stock at a public offering price of $65.50 per share in connection with the forward sale agreements described below. Subject to certain conditions, all shares are expected to be borrowed by the forward purchasers (as defined below) (or their affiliates) from third parties and sold to the underwriters and offered in connection with such forward sale agreements. Barclays and BofA Securities are acting as joint lead book-running managers for this offering. Citigroup and Wells Fargo Securities are acting as joint book-running managers for this offering. Closing of this offering is expected to occur on or about November 5, 2024, subject to customary closing conditions.
In connection with the offering, Xcel Energy entered into separate forward sale agreements with each of Barclays Bank PLC and Bank of America, N.A. (in such capacity, the forward purchasers) under which Xcel Energy agreed to issue and sell to the forward purchasers an aggregate of 18,320,610 shares of its common stock. In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 2,748,091 shares of Xcel Energy’s common stock upon the same terms. If the underwriters exercise their option, Xcel Energy may elect to enter into additional forward sale agreements with the forward purchasers with respect to the additional shares or to issue and sell such shares directly to the underwriters.
Settlement of the forward sale agreements is expected to occur on or prior to June 30, 2026. 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 either of the forward sale agreements.
If Xcel Energy elects physical settlement of either of the forward sale agreements, it presently expects to use the net proceeds for general corporate purposes, which may include capital contributions to its utility subsidiaries, acquisitions, and/or repayment of short-term debt.
The offering is being made pursuant to Xcel Energy’s effective shelf registration statement filed with the Securities and Exchange Commission (SEC). The 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 prospectus supplement and the accompanying prospectus relating to the offering may be obtained from the joint lead book-running managers for the offering: