Summary
Exelon Corporation (EXC) filed an 8-K on July 15, 2015, to report the full physical settlement of previously announced forward sale agreements. These agreements, entered into in June 2014 with Barclays and Goldman Sachs, involved an aggregate of 57,500,000 shares of Exelon common stock. The settlement on July 14, 2015, resulted in Exelon issuing these 57,500,000 shares and receiving net proceeds of approximately $1.868 billion. This transaction effectively raised capital for the company at a price of $32.48 per share, concluding the forward sale arrangements that were initially documented under ISDA Master Agreements.
Key Highlights
- 1Exelon Corporation completed the settlement of forward sale agreements for 57,500,000 shares of common stock on July 14, 2015.
- 2The settlement involved full physical delivery of the shares to the forward purchasers, Barclays Bank PLC and Goldman, Sachs & Co.
- 3Exelon received net proceeds of approximately $1.868 billion from this transaction.
- 4The effective price per share for the settlement was $32.48.
- 5This filing marks the conclusion of forward sale agreements originally entered into in June 2014.
- 6The forward sale agreements were documented under ISDA Master Agreements and related underwriting agreements.
Frequently Asked Questions
The primary event reported is the completion of the settlement of Exelon Corporation's forward sale agreements for 57,500,000 shares of its common stock.
The settlement occurred on July 14, 2015. Exelon issued 57,500,000 shares of its common stock and received net proceeds of approximately $1.868 billion, at an effective price of $32.48 per share.
The counterparties were Barclays Bank PLC (through its agent Barclays Capital Inc.) and Goldman, Sachs & Co., who acted as the Forward Purchasers.
These agreements, entered into in June 2014, were a mechanism for Exelon to raise capital. The settlement signifies the completion of that capital raise, with the company now having issued the shares and received the funds.