WASHINGTON (dpa-AFX) - Xcel Energy Inc. (XEL), an electric and natural gas utility company, on Monday announced that it intends to offer $2 billion in convertible senior notes due 2027 through a private placement.
The company also intends to grant initial purchasers an option to buy up to an additional $300 million in notes.
The option will be exercisable for a 13-day period beginning on the date the notes are first issued.
The company said the final terms, including the initial conversion price and interest rate, will be determined at the time of pricing.
The interest will be payable semiannually in arrears.
The company intends to use the net proceeds to repay short-term borrowings, including a portion of its outstanding commercial paper borrowings.
The proceeds will also be used to repay a portion of borrowings under its 364-day delayed draw term loan agreement.
The proceeds will also be used for other general corporate purposes.
The notes will be senior unsecured obligations and will be convertible into cash, shares of common stock or a combination of both, at the company's election.
In the pre-market trading, Xcel Energy is 3.24% lesser at $77.23 on the Nasdaq.
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