BUZZ-Xcel Energy shares fall after announcing a $2 billion convertible bond issuance plan

November 2 - ** Shares of power and natural gas utility company Xcel Energy (XEL.O) fell 1% in premarket trading on Monday to $79, as the company seeks to raise funds to reduce debt.

** Minnesota-based Xcel Energy (link) is issuing $2 billion in convertible bonds due 2027 through a private placement.

** The company plans to use the net proceeds from this issuance to repay short-term borrowings, including some commercial paper borrowings, and for other general corporate purposes.

** Xcel Energy’s market value is about $51 billion.

** On Thursday, the company reported (link) quarterly results that beat expectations; its (link) report noted that growth was mainly driven by a rebound in electricity infrastructure, equity investments and unusually warm winter weather, though partially offset by higher financing costs.

** As of Friday’s close, XEL shares are up 8.1% so far this year, outperforming the S&P 500 Utilities sector’s 1.7% increase .SPLRCU

** According to data from London Stock Exchange Group (LSEG), the average rating from 21 analysts is “Buy”; the median price target is $92, unchanged over the past three months.

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