Xcel Energy Inc. completed a cash tender offer to repurchase first‑mortgage bonds issued by its wholly owned subsidiary, Northern States Power Company, on December 22, 2025. The company accepted $506,684,000 of principal from bondholders who tendered before the offer’s December 19 expiration, and an additional $2,492,000 under guaranteed delivery procedures. Settlement of the repurchase is scheduled for December 24, 2025, with holders receiving the agreed cash consideration plus accrued interest.
The buyback removes more than $509 million from Xcel’s balance sheet, lowering its total debt and improving leverage ratios. By reducing interest expense, the transaction is expected to lift earnings per share and free capital that can be deployed toward the company’s $60 billion capital plan, which focuses on renewable energy, grid modernization, and data‑center infrastructure. The reduction in debt also signals confidence in Xcel’s credit profile, as the company is repurchasing bonds at a discount to market value.
Management emphasized that the transaction aligns with Xcel’s disciplined capital structure strategy. CEO Bob Frenzel noted that the company’s focus on long‑term growth—particularly in data‑center and renewable energy markets—requires a strong balance sheet and lower financing costs. The buyback therefore supports the company’s broader goal of achieving 100% carbon‑free electricity by 2050 while maintaining financial flexibility.
For shareholders, the transaction is expected to enhance earnings per share by cutting interest expense and may support future dividend growth. The freed‑up capital also provides a buffer for the company’s significant capital expenditures, reducing the need for additional debt issuance and preserving shareholder value.
Analysts view the buyback as prudent financial stewardship rather than a market‑moving event. While the transaction does not trigger a significant short‑term reaction, it reinforces investor confidence in Xcel’s capital management and credit outlook.
Overall, the bond repurchase strengthens Xcel Energy’s balance sheet, supports its ambitious capital plan, and signals management’s confidence in the company’s long‑term financial health.
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