Summary
This 8-K filing from Exelon Corporation and Exelon Generation Company, LLC, dated February 22, 2011, reports on the effectiveness and availability of a supplemental credit facility for Exelon Generation Company, LLC. This facility, originally entered into on November 4, 2010, with UBS AG, Stamford Branch, now has $300,000,000 in aggregate commitment available, as authorized by Exelon's board of directors. The primary purpose of this credit facility is to support the company's needs for letters of credit, with cash borrowings also permitted though not anticipated by management. The credit facility extends to June 15, 2021, but specific availability tranches will expire earlier in late 2015 and early 2016 unless extended. The terms include covenants similar to existing facilities, focusing on limitations on liens, mergers, and asset dispositions, as well as a requirement for a specified interest coverage ratio for letter of credit issuances. Standard events of default are also outlined, including cross-defaults and failure to meet covenant obligations.
Key Highlights
- 1Exelon Generation Company, LLC has secured $300 million in credit facility availability from UBS AG, effective February 22, 2011.
- 2The credit facility is primarily intended to support letters of credit requirements, with cash borrowings also an option.
- 3The facility's lending commitment terminates on June 15, 2021, subject to earlier expiration of specific availability tranches.
- 4Key tranches of the credit facility expire on December 20, 2015 ($150 million) and March 20, 2016 ($150 million) unless extended.
- 5Covenants within the agreement are consistent with existing credit facilities, focusing on liens, mergers, and asset dispositions.
- 6A specified interest coverage ratio is a condition for each letter of credit issuance.
- 7The agreement includes standard events of default, such as cross-defaults on other debt exceeding a certain threshold.