Summary
Exelon Corporation (EXC) announced on August 9, 2022, the closing of an underwritten public offering of 11,300,000 shares of common stock at a price of $43.32 per share. The offering also included the full exercise of an overallotment option by the underwriters for an additional 1,695,000 shares. The total net proceeds to Exelon from this offering, after accounting for the option exercise, were approximately $562.9 million before expenses. The primary use of these proceeds is to permanently repay $575 million in borrowings under a specific term loan credit facility. This move is expected to strengthen the company's balance sheet by reducing outstanding debt. The offering was conducted under an automatic shelf registration statement filed with the SEC and was accompanied by customary representations, warranties, and covenants. Executive officers and directors of the company entered into 60-day lock-up agreements as part of the offering.
Key Highlights
- 1Exelon Corp. successfully completed a public offering of 11,300,000 shares of common stock at $43.32 per share.
- 2Underwriters exercised their option to purchase an additional 1,695,000 shares, increasing the total shares issued.
- 3Total net proceeds from the offering and option exercise amounted to approximately $562.9 million (before expenses).
- 4Proceeds will be used to permanently repay $575 million of borrowings under a term loan credit facility.
- 5The offering was made under an automatic shelf registration statement (Form S-3) filed on August 3, 2022.
- 6Executive officers and directors are subject to customary 60-day lock-up agreements.
- 7The company issued press releases on August 4th and August 5th announcing the commencement and pricing of the offering, respectively.