Summary
Exelon Corporation (EXC) announced on August 4, 2022, the establishment of an at-the-market equity distribution program, allowing the company to offer and sell shares of its common stock with an aggregate gross sales price of up to $1,000,000,000. This program is facilitated through an Equity Distribution Agreement with a syndicate of prominent financial institutions acting as sales agents and forward sellers. The primary purpose of this program is to raise capital to permanently repay borrowings under four variable-rate term loans maturing in 2023, with any remaining proceeds designated for general corporate purposes. The offering is being made under the company's effective Form S-3 Registration Statement. Investors should note that the company has the discretion to suspend or terminate sales under this program at any time, and that forward sale transactions may result in the company not receiving immediate proceeds or potentially owing cash or shares.
Key Highlights
- 1Exelon Corporation has established an at-the-market (ATM) equity distribution program enabling it to sell up to $1 billion of its common stock.
- 2The program allows sales to be conducted through various methods, including on The Nasdaq Stock Market or other exchanges, or through privately negotiated transactions.
- 3Proceeds from the stock sales are intended to be used for the permanent repayment of specific term loan borrowings maturing in 2023, which carry variable interest rates.
- 4Any remaining net proceeds will be utilized for general corporate purposes.
- 5The company has entered into an Equity Distribution Agreement with a group of major financial institutions, including Barclays, Goldman Sachs, J.P. Morgan, Morgan Stanley, and others, to act as sales agents and forward sellers.
- 6Exelon retains the flexibility to suspend or terminate sales under the program at its discretion.
- 7The offering is registered under the company's Form S-3 Registration Statement filed with the SEC.