8-KMaterial AgreementsFinancial EventsExhibits & Filings

EXELON CORP 8-K Report, Material Agreement (Mar 31, 2021)

Filed March 31, 2021For Securities:EXC

Summary

Exelon Corporation (EXC) filed an 8-K on March 31, 2021, primarily detailing an amendment to a receivables purchase agreement involving its subsidiary, Exelon Generation Company, LLC (Generation), through its wholly owned subsidiary Constellation NewEnergy, Inc. (CNE). The amendment to the Receivables Facility, originally established in April 2020, significantly enhances Generation's financing capabilities. Key changes include an extension of the facility's term to March 29, 2024, and an increase in the maximum funding limit from $750 million to $900 million. This expansion provides Generation with greater financial flexibility. The company has already drawn $150 million under the increased limit, with proceeds earmarked for reducing commercial paper balances, thereby strengthening its short-term liquidity position.

Key Highlights

  • 1Amendment to Receivables Purchase Agreement executed on March 29, 2021.
  • 2The agreement involves Exelon Generation Company's subsidiary, Constellation NewEnergy, Inc. (CNE), and NewEnergy Receivables LLC (NER).
  • 3Term of the receivables facility extended through March 29, 2024.
  • 4Maximum funding limit increased from $750 million to $900 million.
  • 5CNE received $150 million in cash on March 31, 2021, related to the increased funding.
  • 6Proceeds from the increased funding will be used to reduce Generation's commercial paper balances.
  • 7The amendment provides greater financial flexibility and liquidity for Exelon Generation.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the amendment to a material definitive agreement, specifically the Receivables Purchase Agreement for Exelon Generation Company's subsidiary, which extends the facility term and increases its funding limit.

The increase in the receivables facility from $750 million to $900 million, along with the $150 million draw, provides Exelon Generation with enhanced liquidity. The funds are being used to reduce commercial paper balances, which strengthens the company's short-term financial health and flexibility.

The amended Receivables Purchase Agreement extends the term of the facility through March 29, 2024, unless further extended as specified in the amendment.

The main parties involved include Constellation NewEnergy, Inc. (CNE) as servicer, NewEnergy Receivables LLC (NER) as seller, MUFG Bank, LTD. as Agent, various Conduits and Financial Institutions as Purchasers, and Purchaser Agents.