Xcel Energy Inc. (NASDAQ: XEL) announced the completion of its registered underwritten offering of 18,320,610 shares of common stock in connection with forward sale agreements. Barclays and BofA Securities served as the joint lead book-running managers, while Citigroup and Wells Fargo Securities acted as joint book-running managers for the offering.
The offering is expected to generate approximately $1.18 billion in net proceeds, before expenses, assuming the forward sale agreements are physically settled at the initial forward sale price of $64.4356 per share.
As part of the offering, Xcel Energy entered into separate forward sale agreements with Barclays Bank PLC and Bank of America, N.A. Under these agreements, Xcel Energy will issue and sell 18,320,610 shares of its common stock at the initial forward sale price. Additionally, the underwriters have a 30-day option to purchase up to 2,748,091 additional shares, under the same terms. If exercised, Xcel Energy may either enter into additional forward sale agreements or sell the shares directly to the underwriters.
Settlement of the forward sale agreements is expected to occur on or before June 30, 2026. Upon physical settlement, Xcel Energy will issue shares in exchange for cash proceeds, based on the initial forward sale price of $64.4356 per share, subject to certain adjustments.
In relation to the forward sale agreements, the forward purchasers borrowed 18,320,610 shares of Xcel Energy’s common stock from third-party lenders and sold them to the underwriters at the closing of the offering.
Xcel Energy plans 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.
