Summary
Exelon Corporation (EXC) announced on April 1, 2020, the successful issuance and sale of $2 billion in aggregate principal amount of notes. This offering comprises $1.25 billion of 4.050% Notes due 2030 and $750 million of 4.700% Notes due 2050. These notes were issued under the Company's existing indenture, as amended by a Fourth Supplemental Indenture executed on the same date. The primary use of the net proceeds, along with existing cash, is to repay the Company's $900 million 2.850% Notes maturing on June 15, 2020. The remaining proceeds will be allocated to general corporate purposes. The issuance of these notes reflects Exelon's active management of its debt obligations and capital structure.
Key Highlights
- 1Exelon Corporation issued $2 billion in new debt notes on April 1, 2020.
- 2The issuance includes $1.25 billion in 4.050% Notes due 2030 and $750 million in 4.700% Notes due 2050.
- 3Proceeds will be used to repay $900 million of maturing 2.850% Notes due June 15, 2020.
- 4Remaining proceeds are designated for general corporate purposes.
- 5The notes were issued under the Company's existing indenture framework, with a Fourth Supplemental Indenture executed for this offering.
- 6Interest on the new notes will be paid semi-annually, starting October 15, 2020.
- 7The notes are subject to optional redemption as detailed in the supplemental indenture.
Frequently Asked Questions
Exelon Corporation issued a total of $2,000,000,000 (or $2 billion) in aggregate principal amount of notes.
A significant portion of the net proceeds, combined with available cash, will be used to repay Exelon's $900 million of 2.850% Notes that mature on June 15, 2020. The remainder of the proceeds will be used for general corporate purposes.
The offering consists of $1.25 billion of 4.050% Notes due 2030 and $750 million of 4.700% Notes due 2050.
This filing primarily relates to the issuance of new debt. The key immediate financial action is the planned repayment of existing maturing debt using proceeds from this issuance. The interest expense will increase due to the new debt, but the repayment of maturing debt will offset some of the net debt increase.