Summary
Exelon Corporation (EXC) announced on June 7, 2005, its entry into a material definitive agreement for the sale of $1.7 billion in senior notes. This offering consists of three tranches: $400 million in five-year notes at 4.45%, $800 million in 10-year notes at 4.90%, and $500 million in 30-year notes at 5.625%. The proceeds from this significant debt issuance are earmarked to repay approximately $1.5 billion of outstanding principal under Exelon's existing $2 billion Term Loan Agreement. The offering is being managed by a syndicate of prominent underwriters, including Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint book-running managers for all tranches. This strategic move indicates Exelon's proactive debt management and refinancing activities, aimed at optimizing its capital structure and potentially reducing borrowing costs.
Key Highlights
- 1Exelon Corp. priced a $1.7 billion senior notes offering on June 6, 2005.
- 2The offering includes $400 million of 5-year notes (4.45% coupon), $800 million of 10-year notes (4.90% coupon), and $500 million of 30-year notes (5.625% coupon).
- 3Proceeds will be used to repay approximately $1.5 billion of outstanding principal under Exelon's existing $2 billion Term Loan Agreement.
- 4The debt issuance is registered under the Securities Act of 1933.
- 5A syndicate of major investment banks, including Citigroup and Merrill Lynch, are acting as underwriters.
- 6The sale is scheduled to close on June 9, 2005.
- 7The senior notes are redeemable at Exelon's option at 'make-whole' redemption prices.