Summary
Exelon Corporation (EXC) has announced the successful issuance and sale of $775 million in aggregate principal amount of its 4.950% Notes due 2036. This new debt offering is primarily intended to refinance the Company's maturing $750 million 3.400% Notes due 2026. The net proceeds, combined with existing cash, will cover the principal repayment of the maturing debt, with any remainder allocated for general corporate purposes.
Key Highlights
- 1Issuance of $775 million in 4.950% Notes due 2036.
- 2Primary use of proceeds is to retire $750 million of 3.400% Notes due 2026 at maturity.
- 3The Notes will pay a fixed interest rate of 4.950% per annum.
- 4Interest payments are semi-annual, due March 15 and September 15, beginning September 15, 2026.
- 5Maturity date for the new Notes is March 15, 2036.
- 6Any remaining proceeds after debt retirement will be used for general corporate purposes.
- 7The issuance was conducted under an indenture dated June 11, 2015, as supplemented by the Ninth Supplemental Indenture dated February 1, 2026.
Frequently Asked Questions
The primary purpose of issuing the $775 million in new notes is to refinance the company's maturing $750 million of 3.400% Notes due 2026. This ensures the company has sufficient funds to meet its upcoming debt obligations.
The new notes carry a fixed interest rate of 4.950% per annum and will mature on March 15, 2036.
After using the net proceeds to retire the maturing 3.400% Notes due 2026, any remaining funds will be used for Exelon Corporation's general corporate purposes.
This transaction effectively replaces a maturing debt obligation with new, longer-term debt. The interest rate on the new debt (4.950%) is higher than the retiring debt (3.400%), which will increase the company's interest expense on this portion of its debt. However, it extends the maturity profile and manages cash flow for the upcoming repayment.