Summary
This Form 8-K filing by Exelon Corporation on June 18, 2001, reports on a significant financing event for its subsidiary, Exelon Generation Company, LLC. Exelon Generation successfully issued $700 million in unsecured Senior Notes, bearing a 6.95% interest rate and maturing on June 15, 2011. These notes were placed privately with Qualified Institutional Buyers under Rule 144A, meaning they were not registered with the SEC. The primary purpose of this debt issuance was to repay an intercompany obligation of $696 million owed to the parent company, Exelon. This obligation was incurred to finance Exelon Generation's acquisition of a 49.9% stake in Sithe Energies in December 2000. Investors should note that the information presented regarding Exelon Generation is treated as an independent entity for this filing, and may not be directly indicative of Exelon Corporation's consolidated financial position or future prospects.
Key Highlights
- 1Exelon Generation issued $700 million in unsecured Senior Notes on June 14, 2001.
- 2The Senior Notes carry a fixed interest rate of 6.95% per annum.
- 3The maturity date for these notes is June 15, 2011.
- 4The offering was conducted as a private placement under Rule 144A to Qualified Institutional Buyers.
- 5Proceeds will be used to repay a $696 million intercompany loan to Exelon.
- 6The intercompany loan was used to fund a 49.9% acquisition of Sithe Energies in December 2000.
- 7Information provided pertains specifically to Exelon Generation and may not reflect Exelon Corporation's consolidated results.