Xcel Energy Inc. announced the issuance of 6.25% junior subordinated notes due 2085 under the ticker XELLL. The notes offer quarterly distributions and carry a BBB‑/Baa2 rating from rating agencies. The issuance provides the company with additional capital to support its expanded capital deployment plan.
The junior subordinated notes are a senior debt instrument that sits below senior secured debt in the capital structure. They are designed to provide a flexible financing source for future infrastructure projects and to help maintain the company’s strong credit profile. The notes are priced at a level that is considered fairly valued relative to Xcel’s existing OTC bonds and sector peers.
The issuance is part of Xcel’s broader strategy to fund its increased capital plan, which now exceeds $60 billion. By raising capital through junior subordinated notes, Xcel can preserve its equity base while meeting the growing demand for clean energy and grid upgrades. The move is expected to support the company’s long‑term growth objectives without materially affecting its current dividend coverage.
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