Summary
Exelon Corporation (EXC) filed an 8-K on April 4, 2017, reporting on the completion of a remarketing of its 2.50% Junior Subordinated Notes due 2024. These notes, originally issued as part of Equity Units in June 2014, were remarketed into $1,150,000,000 aggregate principal amount of 3.497% Junior Subordinated Notes due 2022. Notably, Exelon did not directly receive proceeds from this remarketing. Instead, the funds were used to purchase a portfolio of treasury securities. These matured securities are expected to be used by the company to settle purchase contracts associated with the original Equity Units on June 1, 2017. This transaction effectively modifies the terms of the original notes and serves as a step in settling the associated Equity Unit obligations.
Key Highlights
- 1Exelon Corporation completed the remarketing of $1.15 billion in 2.50% Junior Subordinated Notes due 2024.
- 2The original notes were part of Equity Units issued in June 2014.
- 3The remarketed notes are now 3.497% Junior Subordinated Notes due 2022.
- 4Exelon did not directly receive proceeds from the remarketing.
- 5Proceeds were used to purchase treasury securities maturing on or about May 31, 2017.
- 6The company expects to use funds from the treasury securities to settle purchase contracts related to the Equity Units on June 1, 2017.
- 7The transaction involved a Second Supplemental Indenture to modify the terms of the original notes.