What is the primary purpose of these new credit facilities?

The primary purpose of these new 364-day revolving credit facilities is to provide Exelon Generation Company, LLC with immediate access to funds for short-term financing needs and to support its requirements for letters of credit.

How much capital is available through these credit facilities?

The aggregate commitment across the three credit facilities is $1,000,000,000, or $1 billion.

What are the interest rate options for borrowings under these facilities?

Borrowings can be structured as either LIBOR Rate Loans (based on the London Interbank Offered Rate plus a specified margin) or Base Rate Loans (based on the lender's standard prime rate), offering flexibility to the borrower.

Are there any significant new restrictions or obligations for Exelon Generation due to these facilities?

The credit facilities include covenants and events of default generally similar to Exelon Generation's existing bi-lateral credit facilities. These typically involve limitations on liens, asset dispositions, mergers, and the maintenance of a specified interest coverage ratio, along with standard default clauses for non-payment or cross-defaulting on other debt.

EXC 8-K: Material Agreements & Financial Events

Summary

Exelon Generation Company, LLC, a subsidiary of Exelon Corp (EXC), entered into three separate 364-day revolving credit facilities totaling $1 billion on September 19, 2006. These facilities are intended to meet short-term financing needs and letter of credit requirements for Generation. The credit lines offer flexible borrowing options through LIBOR or Base Rate loans and involve a facility fee on the total commitment. The terms and conditions, including covenants and events of default, are generally consistent with existing bi-lateral credit agreements from February 2006, focusing on financial health and operational stability.

Key Highlights

1Exelon Generation secured $1 billion in aggregate revolving credit facilities, maturing in 364 days.
2The facilities will be used for short-term financing needs and letter of credit requirements at the Generation subsidiary level.
3Borrowings can be made as LIBOR or Base Rate loans, providing flexibility for interest rate management.
4A facility fee is payable on the total commitment, irrespective of usage.
5Key covenants and events of default are similar to existing credit agreements, focusing on financial covenants like interest coverage ratio and standard default provisions.
6This action indicates a proactive approach to managing short-term liquidity and financial obligations for Exelon's generation operations.

EXELON CORP 8-K Report, Material Agreement (Sep 21, 2006)

Summary

Key Highlights

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