Summary
This Form 8-K filing by Exelon Corporation on June 4, 2014, details material definitive agreements related to its financing strategy. The most significant event is the entry into a $7.221 billion 364-day senior unsecured bridge term loan agreement. This facility is intended to partially fund Exelon's proposed acquisition of Pepco Holdings, Inc., announced on April 30, 2014. The filing also reports amendments to the revolving credit facilities for Exelon and its subsidiaries (Exelon Generation Company, PECO Energy Company, and Baltimore Gas and Electric Company). These amendments extend the maturity dates of these facilities to May 30, 2019, providing continued access to significant unsecured credit lines, ranging from $0.5 billion to $5.3 billion in aggregate commitments. Investors should note the terms of the bridge loan, including interest rates, potential fees, and the 364-day maturity, which are contingent on the acquisition's closing.
Key Highlights
- 1Exelon entered into a $7.221 billion 364-day senior unsecured bridge term loan agreement on May 30, 2014.
- 2The bridge loan is intended to partially finance the proposed acquisition of Pepco Holdings, Inc.
- 3The bridge loan agreement includes provisions for interest at a fluctuating base rate or euro-dollar rate plus an applicable margin.
- 4Exelon will pay ticking fees on the undrawn commitments and duration fees if the loans are funded.
- 5Revolving credit facilities for Exelon and its key subsidiaries (Generation, PECO, BGE) have had their maturity dates extended to May 30, 2019.
- 6The extended revolving credit facilities provide aggregate bank commitments totaling billions across the entities.
- 7The filing indicates that costs associated with the revolving credit facility amendments were not material.