Summary
This 8-K filing by Exelon Corporation, specifically through its subsidiary Exelon Generation Company, LLC, announces the establishment of new unsecured, one-year revolving bilateral credit facilities. These facilities, totaling $875 million, were entered into with six different financial institutions, including Wachovia Bank, Citibank, and HSBC. The primary purpose of these credit lines is to support short-term financing needs and the issuance of letters of credit for Exelon Generation.
Key Highlights
- 1Exelon Generation Company, LLC secured $875 million in new unsecured, one-year revolving bilateral credit facilities.
- 2The credit facilities were established with six different banks, including Wachovia, Citibank, HSBC, The Royal Bank of Scotland, Barclays, and Wells Fargo.
- 3Funds can be drawn as loans or used for letters of credit to meet short-term financing needs.
- 4Interest on loans will be based on either the LIBOR Rate plus a margin or the lender's prime rate.
- 5A facility fee is payable on the commitment amount regardless of usage.
- 6The credit facilities incorporate covenants from Exelon Generation's existing syndicated credit facility, including limitations on liens, asset dispositions, and requirements for maintaining specified interest coverage ratios.
- 7Standard events of default are included, which could be triggered by non-payment or failure to adhere to covenants.