8-KMaterial AgreementsFinancial EventsExhibits & Filings

EXELON CORP 8-K Report, Material Agreement (Sep 22, 2014)

Filed September 22, 2014For Securities:EXC

Summary

Exelon Corporation, through its indirect subsidiary ExGen Texas Power, LLC, has successfully closed a $695 million senior secured term loan and revolving credit facility. The facility includes a $675 million term loan, from which the company received approximately $507 million in net proceeds after fees and expenses. These net proceeds are being distributed to Exelon Generation Company, LLC for general corporate purposes. The credit facility also includes a $20 million revolving credit/letter of credit facility with a five-year term. This financing is secured by collateral owned by ExGen Texas Power, LLC and its subsidiaries, and is further guaranteed by ExGen Texas Power Holdings, LLC and several other wholly-owned subsidiaries. The term loans have an interest rate tied to the Eurodollar Rate plus a margin of 4.75% and mature in September 2021, while the revolving credit facility bears interest at the Eurodollar Rate plus 4.25% and matures in September 2019. This report provides investors with an update on the company's financing activities and the structure of this new credit facility.

Key Highlights

  • 1ExGen Texas Power, LLC, a subsidiary of Exelon Corporation, secured a new $695 million senior secured term loan and revolving credit facility.
  • 2The facility consists of a $675 million term loan and a $20 million revolving credit/letter of credit facility.
  • 3Net proceeds of approximately $507 million from the term loan will be used for Exelon Generation Company, LLC's general corporate purposes.
  • 4The term loans mature on September 18, 2021, and bear an initial interest rate of Eurodollar Rate + 4.75%.
  • 5The revolving credit facility matures on September 18, 2019, with an initial interest rate of Eurodollar Rate + 4.25%.
  • 6The obligations under the credit facility are guaranteed by ExGen Texas Power Holdings, LLC and several subsidiary guarantors.
  • 7The credit facility is secured by collateral owned by the borrower and its guarantors.

Frequently Asked Questions

The primary purpose of the credit facility is to provide financing for ExGen Texas Power, LLC. The net proceeds from the term loan portion are intended for Exelon Generation Company, LLC's general corporate purposes.

The term loans total $675 million and mature on September 18, 2021, with an initial interest rate of Eurodollar Rate + 4.75%. The revolving credit facility is $20 million, matures on September 18, 2019, and has an initial interest rate of Eurodollar Rate + 4.25%.

The obligations are guaranteed by ExGen Texas Power Holdings, LLC and several wholly-owned subsidiaries of ExGen Texas Power, LLC, including Wolf Hollow I Power, LLC, Colorado Bend I Power, LLC, Laporte Power, LLC, Handley Power, LLC, and Mountain Creek Power, LLC. The facility is secured by collateral owned or held by the borrower and the guarantors.

This financing indicates that a significant subsidiary is actively managing its capital structure and accessing credit markets. The use of proceeds for general corporate purposes suggests flexibility in how Exelon Generation Company, LLC intends to utilize these funds, which could be for operational needs, investments, or other strategic initiatives.