8-KOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Mar 31, 2020)

Filed March 31, 2020For Securities:ED

Summary

Consolidated Edison Inc. (ED) subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), announced on March 26, 2020, the successful completion of a significant debt offering. This offering involved the sale of $600 million in 3.35% Series 2020 A Debentures and $1.0 billion in 3.95% Series 2020 B Debentures, totaling $1.6 billion in aggregate principal amount. This strategic financing aims to strengthen CECONY's capital structure and support its ongoing operations and capital expenditure plans. Investors should note the specific interest rates and maturity associated with these new debentures, as detailed in the underwriting agreement and accompanying exhibits.

Key Highlights

  • 1CECONY issued $600 million of 3.35% Series 2020 A Debentures.
  • 2CECONY issued $1.0 billion of 3.95% Series 2020 B Debentures.
  • 3Total aggregate principal amount of debentures issued is $1.6 billion.
  • 4The debt offering was conducted under an underwriting agreement with several prominent underwriters, including Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, and Mizuho Securities USA LLC.
  • 5The debentures were registered under the Securities Act of 1933 via a Form S-3 Registration Statement.
  • 6The filing includes exhibits detailing the underwriting agreement, forms of the debentures, and legal opinions.

Frequently Asked Questions

Consolidated Edison Company of New York, Inc. raised a total of $1.6 billion through the issuance of two series of debentures: $600 million of 3.35% Series 2020 A Debentures and $1.0 billion of 3.95% Series 2020 B Debentures.

The Series 2020 A Debentures carry a coupon rate of 3.35%, and the Series 2020 B Debentures have a coupon rate of 3.95%. Specific maturity dates are not detailed in this item but would be found in the referenced forms of the debentures and the underwriting agreement exhibits.

While not explicitly stated in Item 8.01, typically such debt issuances by utility companies are for general corporate purposes, which can include funding capital expenditures, refinancing existing debt, and supporting ongoing operational needs. This strengthens the company's financial position.

The lead underwriters, acting as representatives of the underwriters, included Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, and Mizuho Securities USA LLC.