8-KOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Dec 4, 2009)

Filed December 4, 2009For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) announced on December 4, 2009, the successful completion of two significant financing transactions. These include the sale of 5,000,000 shares of common stock and $600 million in aggregate principal amount of 5.50% Debentures, Series 2009 C due 2039 by its subsidiary, Consolidated Edison Company of New York, Inc. These transactions were conducted under effective registration statements filed earlier in 2009 and were executed through underwriting agreements with major financial institutions. The issuance of new equity and debt provides Con Edison with additional capital, which can be utilized for ongoing operations, capital expenditures, and potentially to strengthen its balance sheet in the prevailing economic climate.

Key Highlights

  • 1Con Edison Inc. completed the sale of 5,000,000 shares of its common stock on December 4, 2009.
  • 2Consolidated Edison Company of New York, Inc. issued $600 million in 5.50% Debentures, Series 2009 C due 2039.
  • 3Both offerings were made pursuant to effective registration statements filed under the Securities Act of 1933.
  • 4The equity offering was underwritten by UBS Securities LLC.
  • 5The debt offering involved multiple underwriters, including Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Mizuho Securities USA Inc., and UBS Securities LLC.
  • 6The filing incorporates by reference the underwriting agreements and legal opinions related to these issuances.

Frequently Asked Questions

The primary purpose of these transactions was to raise capital. Con Edison sold common shares and its subsidiary issued debentures to generate funds, likely for general corporate purposes, capital investments in utility infrastructure, and to manage its financing needs.

The sale of 5,000,000 new shares will likely result in some dilution for existing shareholders, meaning their ownership percentage of the company will decrease slightly. However, the capital raised could support future growth and operational improvements, potentially benefiting shareholders in the long run.

The 5.50% interest rate represents the cost of borrowing for Con Edison of New York on this specific debt issuance. Investors would evaluate this rate in the context of prevailing market interest rates for similar fixed-income securities at that time, considering the creditworthiness of the issuer.

This 8-K filing reports on completed financing events. While it doesn't present new financial statements directly, it signals an increase in Con Edison's cash position and potentially its debt load. Investors should look for how this new capital is deployed in future financial reports (like 10-Q or 10-K) to assess its impact on profitability and financial health.