MGE ENERGY INC 8-K

What Happened MGE Energy Inc. (via its wholly‑owned subsidiary Madison Gas and Electric Company) filed an 8‑K reporting that on January 22, 2026 it issued $90 million aggregate principal amount of unsecured senior notes under a Note Purchase Agreement. The issuance consisted of three series: $30M 5.05% Series A due January 31, 2036; $30M 5.25% Series B due January 31, 2041; and $30M 5.79% Series C due January 31, 2056. Interest is payable semi‑annually on January 31 and July 31, beginning July 31, 2026.

Key Details

• Issuance date and size: January 22, 2026 — $90 million total ($30M each Series A, B and C).
• Interest & maturities: 5.05% (2036), 5.25% (2041), 5.79% (2056); interest paid Jan 31 & Jul 31, starting July 31, 2026.
• Structure & use of proceeds: Notes are unsecured, not issued under MGE’s 1998 Indenture; net proceeds expected to fund capital expenditures and other corporate obligations.
• Covenants & redemption: MGE must maintain consolidated indebtedness / consolidated total capitalization ≤ 65% and may not issue “Priority Debt” exceeding 20% of consolidated assets; notes are redeemable at MGE’s option with a make‑whole premium (with limited exceptions). After certain change‑of‑control/credit‑rating events, MGE must offer to prepay the notes at par plus accrued interest.

Why It Matters This filing shows MGE Energy is raising long‑term unsecured debt to fund capital and corporate needs, adding $90M of fixed‑rate obligations with staggered maturities out to 2056. Investors should note the added interest expense, the unsecured nature of the debt (no new collateral), and the financial covenants (65% leverage cap and 20% limit on secured “Priority Debt”), which can affect the company’s future financing flexibility and credit profile.