Xcel Energy (XEL) issued, on November 5, 2026, US$2.5 billion in senior convertible notes, bearing interest at 2.625% per year and maturing on December 15, 2027. The amount includes US$300 million issued after the initial purchasers fully exercised their option to purchase additional notes. The notes were sold to J.P. Morgan Securities, BofA Securities, Citigroup Global Markets and Wells Fargo Securities, as representatives of the initial purchasers, for resale to qualified institutional buyers.
Interest will be paid semiannually, on June 15 and December 15, beginning on June 15, 2027. The company may not redeem the notes before maturity and there is no sinking fund. The notes are senior unsecured obligations of the company.
The initial conversion rate is 11.4596 common shares per US$1,000 in notes, which is equivalent to a conversion price of about US$87.26 per share. Conversion may occur only in specific situations, such as when the stock price is above 130% of the conversion price under certain conditions, or at any time from September 15, 2027. Upon conversion, Xcel Energy will pay cash up to the principal amount and, for any excess, may pay in cash, shares or a combination of the two.
At the maximum conversion rate of 12.6055 shares per US$1,000, up to 31,513,750 shares may be issued, subject to adjustments. In the event of a fundamental change, as defined in the indenture, holders may require the repurchase of the notes at 100% of the principal amount, plus accrued interest.
