Summary
Exelon Corporation (EXC) announced a significant transaction on August 9, 2021, related to its subsidiary Exelon Generation Company, LLC. Generation has finalized the purchase of EDF Inc.'s 49.99% equity interest in Constellation Energy Nuclear Group, LLC (CENG) for a net price of $885 million. This acquisition fully consolidates ownership of CENG, which operates nuclear plants at Calvert Cliffs, R.E. Ginna, and Nine Mile Point. The transaction resolves a put option exercised by EDF in January 2020 and includes a credit for EDF's share of a preferred distribution. To finance this acquisition, Generation secured an $880 million 364-day Term Loan Credit Agreement with Barclays Bank PLC. The company also highlighted that EDF agreed to withdraw from all regulatory proceedings concerning Exelon's proposed separation of its generation business from its regulated utilities. This move could streamline Exelon's strategic restructuring efforts by removing potential opposition to the spin-off.
Key Highlights
- 1Exelon Generation fully acquired EDF's 49.99% stake in Constellation Energy Nuclear Group (CENG) for a net $885 million.
- 2The acquisition consolidates ownership of nuclear plants located at Calvert Cliffs, R.E. Ginna, and Nine Mile Point.
- 3The transaction settles a put option exercised by EDF in January 2020.
- 4Exelon Generation obtained an $880 million 364-day term loan to fund the acquisition.
- 5EDF agreed to withdraw from regulatory proceedings related to Exelon's proposed separation of its generation business.
- 6The $880 million loan carries a variable interest rate (LIBOR + 0.875%) with a potential increase after March 31, 2022.