Xcel Energy 2002 Annual Report Download - page 54

long-term debt – credit facilities
NRG has several credit facilities used for long-term financing:
(Thousands of dollars) Available Recourse Outstanding Rate at
Facility Line of Credit to NRG End Date Dec. 31, 2002 Dec. 31, 2002
Revolving lines of credit
NRG Finance Co. I LLC $2,000,000 Yes May 2006 $1,081,000 4.92%
Term loan facilities
Mid-Atlantic $580,000 No November 2005 $409,200 3.30%
LSP Kendall Energy $554,200 No September 2005 $495,800 3.19%
Brazos Valley $180,000 No June 2008 $194,400 4.41%
McClain $296,000 No November 2006 $157,300 4.57%
NRG Financing Co. I LLC The NRG Finance Co. I LLC facility has been used to finance the acquisition, development and construction
of power generating plants located in the United States, and to finance the acquisition of turbines for such facilities. The facility is
nonrecourse to NRG other than its obligation to contribute equity at certain times in respect of projects and turbines financed under the
facility. NRG estimates the obligations to contribute equity to be approximately $819 million as of Dec. 31, 2002. At Dec. 31, 2002,
interest and fees due in September 2002 were not paid, and NRG has suspended required equity contributions to the projects. Supporting
construction and other contracts associated with NRG’s Pike and Nelson projects were violated by NRG in September and October 2002,
respectively. In November 2002, lenders to NRG accelerated the approximately $1.08 billion of debt under the construction revolver
facility, rendering the debt immediately due and payable. Thus, this facility is currently in default.
LSP Kendall Energy As part of NRG’s acquisition of the LS Power assets in January 2001, NRG, through its wholly owned subsidiary
LSP Kendall Energy LLC, has acquired a $554.2-million credit facility. On Jan. 10, 2003, NRG received a notice of default from LSP
Kendall’s lenders indicating that certain events of default have taken place. By issuing this notice of default, the lenders have preserved all
of their rights and remedies under the credit agreement and other credit documents. NRG is negotiating a waiver to this default notice
with the creditors to LSP Kendall.
Brazos Valley In June 2001, NRG, through its wholly owned subsidiaries Brazos Valley Energy LP and Brazos Valley Technology LP,
entered into a $180-million nonrecourse construction credit facility to fund the construction of the 600-megawatt Brazos Valley gas-fired,
combined-cycle merchant generation facility, located in Texas. On Jan. 31, 2003, NRG consented to the foreclosure of its Brazos Valley
project by its lenders. As consequence of foreclosure, NRG no longer has any interest in the Brazos Valley project. However, NRG may
be obligated to infuse additional capital to fund a debt service reserve account that had never been funded, and may be obligated to make
an equity infusion to satisfy a contingent equity agreement. As of Dec. 31, 2002, NRG recorded $24 million for the potential obligations.
McClain In August 2001, NRG entered into a 364-day term loan of up to $296 million. The credit facility was structured as a senior
unsecured loan and was partially nonrecourse to NRG. The proceeds were used to finance the McClain generating facility acquisition.
In November 2001, the credit facility was repaid from the proceeds of a $181.0-million term loan and $8.0-million working capital
facility entered into by NRG McClain LLC with Westdeutsche Landesbank Girozentrale, nonrecourse to NRG. On Sept. 17, 2002,
NRG McClain LLC received notice from the agent bank that the project loan was in default as a result of the downgrade of NRG and
of defaults on material obligations.
8. preferred stock
At Dec. 31, 2002, Xcel Energy had six series of preferred stock outstanding, which were callable at its option at prices ranging from
$102.00 to $103.75 per share plus accrued dividends. Xcel Energy can only pay dividends on its preferred stock from retained earnings
absent approval of the SEC under PUHCA. See Note 12 for a description of such restrictions.
The holders of the $3.60 series preferred stock are entitled to three votes for each share held. The holders of the other preferred stocks
are entitled to one vote per share. While dividends payable on the preferred stock of any series outstanding is in arrears in an amount
equal to four quarterly dividends, the holders of preferred stocks, voting as a class, are entitled to elect the smallest number of directors
necessary to constitute a majority of the board of directors, and the holders of common stock, voting as a class, are entitled to elect the
remaining directors.
page 68 xcel energy inc. and subsidiaries
notes to consolidated financial statements