Summary
This 8-K filing by Exelon Corporation on April 5, 2005, details the company's recent financing activities. Exelon has entered into a new $500 million term loan agreement with Dresdner Bank AG, secured on April 1, 2005, and fully borrowed on April 4, 2005. The purpose of this new loan was to repay a portion of the previously announced $2 billion term loan facility. Initially, $1.2 billion was drawn on March 10, 2005, and an additional $800 million on March 30, 2005, from the larger facility, with these funds directly contributing to Exelon's defined benefit pension plans. The new $500 million term loan carries a variable interest rate, tied to either the Base Rate or the Eurodollar Rate, and matures on December 1, 2005. Exelon intends to repay this short-term obligation primarily through the proceeds expected from long-term debt financing to be issued later in 2005. Investors should note the company's proactive management of its liquidity and pension obligations through these short-term financing arrangements.
Key Highlights
- 1Exelon entered into a new $500 million term loan agreement with Dresdner Bank AG on April 1, 2005.
- 2The $500 million term loan was fully drawn on April 4, 2005.
- 3The proceeds from the new $500 million loan were used to pay down amounts borrowed under a prior $2 billion term loan agreement.
- 4The prior $2 billion term loan had $1.2 billion borrowed on March 10, 2005, and $800 million borrowed on March 30, 2005.
- 5Funds from the initial $2 billion term loan were contributed to Exelon's defined benefit pension plans.
- 6The new $500 million term loan has a variable interest rate and matures on December 1, 2005.
- 7Exelon expects to repay the $500 million term loan with proceeds from future long-term debt financing.