8-KMaterial AgreementsFinancial EventsExhibits & Filings

EXELON CORP 8-K Report, Material Agreement (Feb 12, 2014)

Filed February 12, 2014For Securities:EXC

Summary

Exelon Corporation, through its indirect subsidiary ExGen Renewables I, LLC, has secured a $300.0 million senior secured term loan credit facility. This facility, established on February 6, 2014, with a maturity date of February 6, 2021, provides net proceeds of approximately $293.7 million after accounting for discounts, fees, and expenses. The funds will be distributed to Exelon Generation Company, LLC for its general corporate purposes, suggesting potential investment in existing operations or strategic initiatives. The loan is guaranteed by ExGen Renewables I Holding, LLC, the direct parent of the borrower, and is secured by collateral owned by the borrower and Holdings. Interest rates are based on the LIBOR Rate plus a margin of 4.25%, with an option to convert to a Base Rate plus 3.25%. The credit agreement includes standard covenants and default provisions for the benefit of lenders, with acceleration clauses for specific events.

Key Highlights

  • 1ExGen Renewables I, LLC (an Exelon indirect subsidiary) closed a $300 million senior secured term loan credit facility.
  • 2The facility has a maturity date of February 6, 2021.
  • 3Net proceeds of approximately $293.7 million will be used for Exelon Generation Company, LLC's general corporate purposes.
  • 4The loan is fully and unconditionally guaranteed by ExGen Renewables I Holding, LLC (the borrower's direct parent).
  • 5The loan is secured by collateral owned by the borrower and Holdings.
  • 6Initial interest rate is LIBOR Rate + 4.25%, with an option to convert to Base Rate + 3.25%.
  • 7The credit agreement includes customary covenants and default provisions.

Frequently Asked Questions

The net proceeds from this $300 million senior secured term loan credit facility are intended for the general corporate purposes of Exelon Generation Company, LLC, a direct parent of the borrower. This could include funding operations, investments, or other strategic initiatives.

The loan matures on February 6, 2021. Initially, it accrues interest at the LIBOR Rate plus 4.25% per annum. Borrowers have the option to convert to a Base Rate plus 3.25% per annum under specified terms.

While the loan is from an indirect subsidiary, ExGen Renewables I, LLC, it is guaranteed by its direct parent, ExGen Renewables I Holding, LLC. The obligations are secured by collateral. Investors should refer to the Credit Agreement (Exhibit 10.1) for specific details on guarantees and recourse provisions beyond what is stated in the 8-K.

This financing indicates Exelon Generation Company, LLC's access to substantial debt capital, likely to support its business operations or strategic objectives. The use of proceeds for general corporate purposes suggests flexibility in how these funds will be deployed within the generation segment.