8-KOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Jun 17, 2016)

Filed June 17, 2016For Securities:ED

Summary

Consolidated Edison Company of New York, Inc. (CECONY), a subsidiary of Consolidated Edison Inc. (ED), announced on June 14, 2016, the execution of an underwriting agreement for the sale of $550 million in aggregate principal amount of its 3.85% Debentures, Series 2016 A. This financing was registered under the Securities Act of 1933, indicating it was prepared in accordance with public offering regulations. The issuance of these debentures represents a significant capital raise for CECONY, likely intended to fund its ongoing operations, capital expenditures, or refinance existing debt. Investors should note that this filing primarily concerns a debt issuance by a subsidiary. While this impacts the overall capital structure and financial obligations of the Consolidated Edison group, it does not directly represent a change in equity or a new business segment. The specified interest rate of 3.85% provides a clear cost of debt for this capital raise. The filing also lists associated exhibits, including the underwriting agreement and forms of the debentures, which provide further detail on the terms of the debt.

Key Highlights

  • 1CECONY, a subsidiary of Consolidated Edison Inc., is issuing $550 million in aggregate principal amount of 3.85% Debentures, Series 2016 A.
  • 2The debentures were issued on June 14, 2016.
  • 3The issuance was conducted through an underwriting agreement with BNY Mellon Capital Markets, LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., and UBS Securities LLC.
  • 4The debentures are registered under the Securities Act of 1933 via a Form S-3 registration statement.
  • 5This debt issuance is a material event for CECONY's capital structure and financial obligations.
  • 6The 3.85% interest rate provides transparency on the cost of this specific debt issuance.

Frequently Asked Questions

This 8-K filing announces a significant debt issuance by Consolidated Edison Company of New York, Inc. (CECONY), a subsidiary of Consolidated Edison Inc. (ED). It details the sale of $550 million in 3.85% Debentures, Series 2016 A, and the related underwriting agreement.

This debt issuance impacts the consolidated financial position of Consolidated Edison Inc. by increasing the total debt on its balance sheet. While CECONY is issuing the debt, it is a material subsidiary, and its financial obligations are relevant to the overall credit profile and financial health of the parent company.

The 3.85% represents the annual coupon rate that CECONY will pay to holders of these Series 2016 A Debentures. It signifies the cost of borrowing for this $550 million debt issuance at the time of the agreement.

Yes, the debentures were registered under the Securities Act of 1933, indicating they were offered to the public through underwriters. Further details on their trading would typically be available through financial market data providers once they begin trading.