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.
Frequently Asked Questions
Exelon Generation secured an aggregate commitment of $875 million through these new credit facilities.
The credit facilities are primarily intended to meet short-term financing needs at Exelon Generation and to issue letters of credit.
These credit facilities are unsecured.
These facilities incorporate by reference covenants from Exelon Generation's existing syndicated credit facility, which include limitations on liens, mergers, consolidations, asset dispositions, and the maintenance of specified interest coverage ratios.