Xcel Energy 2003 Annual Report Download - page 43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XCEL ENERGY 2003 ANNUAL REPORT 59
Credit Facilities As of Dec. 31, 2003, Xcel Energy had the following credit facilities available:
Credit Line
Maturity Term Credit Line Available
Xcel Energy November 2005 5 years $400 million $381 million
NSP-Minnesota May 2004 364 days $275 million $175 million
PSCo May 2004 364 days $350 million $349 million
SPS February 2004 364 days $100 million $ 97 million
Other subsidiaries Various Various $ 65 million $ 65 million
The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit, and, depending on credit ratings, support for
commercial paper borrowings. Of the notes payable to banks, $58 million was drawn on the lines of credit at Dec. 31, 2003, and reduced the amounts
available under these credit lines. Also, $95.5 million of letters of credit were outstanding at Dec. 31, 2003, as discussed in Note 15 to the Consolidated
Financial Statements, of which approximately $65 million were outstanding under the various credit facilities, which further reduced amounts available
under the lines. The credit facilities of NSP-Minnesota and PSCo are secured, while all other facilities are unsecured.
The SPS $100 million facility expired in February 2004 and was replaced with a $125 million unsecured, 364-day credit agreement.
The borrowing rates under these lines of credit are based on either the bank’s published base rate or the applicable London Interbank Offered Rate
(LIBOR) plus a euro dollar rate margin.
6. LONG-TERM DEBT
Except for SPS and other minor exclusions, all property of the utility subsidiaries is subject to the liens of their first mortgage indentures, which are
contracts between the companies and their bondholders. In addition, certain SPS payments under its pollution-control obligations are pledged to secure
obligations of the Red River Authority of Texas.
The utility subsidiaries’ first mortgage bond indentures provide for the ability to have sinking-fund requirements. Annual sinking-fund requirements
at Cheyenne are $0.2 million and must be satisfied with cash payments. NSP-Minnesota, NSP-Wisconsin, PSCo and SPS have no sinking-fund
requirements for current bonds outstanding.
NSP-Minnesota’s 2011 series bonds were redeemable upon seven-days notice at the option of the bondholder. Because the terms allowed the holders to
redeem these bonds on short notice, the bonds were classified as a current portion of long-term debt reported under current liabilities on the balance
sheet for the year ended Dec. 31, 2002. The bonds were redeemed in October 2003.
Xcel Energy’s 2007 and 2008 series convertible senior notes are convertible into shares of Xcel Energy common stock at a conversion price of $12.33 per
share. Conversion is at the option of the holder at any time prior to maturity.
Maturities of long-term debt are:
2004 $160 million
2005 $224 million
2006 $838 million
2007 $340 million
2008 $655 million
7. PREFERRED STOCK
At Dec. 31, 2003, 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 11 to the Consolidated Financial Statements 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. In the event that 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. The holders of common stock, voting as a class, are entitled to elect the remaining directors.
The charters of some of Xcel Energy’s subsidiaries also authorize the issuance of preferred shares. However, at Dec. 31, 2003, there are no such shares
outstanding. This chart shows data for first- and second-tier subsidiaries:
Preferred Shares Preferred Shares
Authorized Par Value Outstanding
Cheyenne 1,000,000 $100.00 None
SPS 10,000,000 $ 1.00 None
PSCo 10,000,000 $ 0.01 None