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.