MGE Energy Issues New Senior Notes Under Purchase Agreement

MGE Energy ( (MGEE) ) just unveiled an announcement.

On January 22, 2026, MGE issued an aggregate $90 million of unsecured senior notes in three tranches—a $30 million 5.05% Series A due January 31, 2036, a $30 million 5.25% Series B due January 31, 2041, and a $30 million 5.79% Series C due January 31, 2056—under a new Note Purchase Agreement with institutional purchasers. The notes, which are outside MGE’s existing 1998 indenture, carry semiannual interest payments starting July 31, 2026, are optionally redeemable with a make-whole premium (subject to limited maturity-window exceptions), and must be prepaid at par plus accrued interest, but without a premium, following certain change-of-control events tied to ownership of MGE Energy and the company’s investment-grade ratings. The agreement imposes leverage and structural protections, including a cap on the ratio of consolidated indebtedness to total capitalization at 65% and restrictions on issuing priority debt above 20% of consolidated assets, effectively limiting additional secured borrowing and requiring equal and ratable security for these notes if the principal bank credit facilities are ever secured, thereby preserving noteholder protections while providing MGE funding flexibility for capital spending and other corporate obligations.

The most recent analyst rating on (MGEE) stock is a Sell with a $74.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.

Spark’s Take on MGEE Stock

According to Spark, TipRanks’ AI Analyst, MGEE is a Neutral.

MGE Energy’s overall stock score is driven by its solid financial performance and stable balance sheet, which are the most significant factors. The technical analysis suggests a neutral market sentiment, while the valuation indicates moderate pricing with limited growth potential. The absence of recent earnings call data and corporate events means these factors do not influence the score.

To see Spark’s full report on MGEE stock, click here.

More about MGE Energy

Madison Gas and Electric Company (MGE), a wholly owned subsidiary of MGE Energy, Inc., operates in the regulated utilities sector, providing gas and electric service under long-term capital-intensive investment plans. As a utility issuer in the U.S. debt markets, MGE relies on a mix of unsecured notes and bank credit facilities to fund capital expenditures and support its balance sheet, subject to leverage, priority debt and rating-based covenants that are typical for investment-grade utility borrowers.

Average Trading Volume: 123,873

Technical Sentiment Signal: Hold

Current Market Cap: $2.89B

For a thorough assessment of MGEE stock, go to TipRanks’ Stock Analysis page.