Summary
Exelon Corporation (EXC) has announced the issuance and sale of $2.0 billion in aggregate principal amount of notes to institutional buyers. This offering includes $650 million of 2.750% notes due 2027, $650 million of 3.350% notes due 2032, and $700 million of 4.100% notes due 2052. The proceeds from this debt issuance will be used to repay a portion of Exelon's upcoming $1.15 billion of 3.497% Junior Subordinated Notes due June 1, 2022, with the remainder allocated for general corporate purposes. This move signals proactive debt management by Exelon, as it addresses an upcoming maturity with new, potentially longer-term, and differently priced debt. The issuance is structured under Rule 144A for qualified institutional buyers and Regulation S for non-U.S. persons, indicating a focus on sophisticated market participants. Investors should note the varying interest rates and maturity dates associated with the new notes, which will impact the company's future interest expenses and debt profile.
Key Highlights
- 1Exelon issued $2.0 billion in new notes comprising three tranches: 2.750% notes due 2027 ($650M), 3.350% notes due 2032 ($650M), and 4.100% notes due 2052 ($700M).
- 2The primary use of proceeds is to repay $1.15 billion of 3.497% Junior Subordinated Notes maturing on June 1, 2022.
- 3Remaining proceeds will be used for general corporate purposes.
- 4The notes were offered to qualified institutional buyers in the U.S. under Rule 144A and to non-U.S. persons outside the U.S. under Regulation S.
- 5Interest on the new notes is payable semi-annually, starting September 15, 2022.
- 6A Registration Rights Agreement has been entered into to facilitate the exchange or registration of these notes under the Securities Act.
- 7The issuance represents proactive refinancing and management of Exelon's upcoming debt obligations.