By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Feb. 23 – Exelon Corp. priced $1.7 billion of notes in three parts (Baa2/BBB/BBB) on Thursday, including an add-on tranche to the company’s 5.6% notes due 2053, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
The $650 million 5.15% notes due March 15, 2029 priced at 99.781 to yield 5.199%, or Treasuries plus 87.5 basis points.
A second tranche of $650 million 5.45% notes due March 15, 2034 priced at 99.835 to yield 5.471%, or 115 bps above Treasuries.
An add-on tranche of $400 million 5.6% notes due March 15, 2053 priced at 97.683 to yield 5.765%, or 130 bps over Treasuries. The 2053 notes will be fungible with the company’s 5.6% notes due 2053, of which $650 million was issued on Feb. 16, 2023.
The notes were talked in the Treasuries plus 120 bps area, 145 bps area and 160 bps area, respectively.
The 2029 notes are callable at a make-whole amount of Treasuries plus 15 bps before Feb. 15, 2029 and after at par.
The 2034 notes feature a make-whole call at Treasuries plus 20 bps before Dec. 15, 2033 followed by a par call.
The 2053 notes feature a make-whole call at Treasuries plus 30 bps before Sept. 15, 2052, followed by a par call for the last six months.
Barclays, BofA Securities, Inc., Citigroup Global Markets, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
A portion of proceeds from the notes, together with available cash balances, will be used to repay $500 million of Exelon’s outstanding term loans maturing in April and bearing interest at SOFR plus 85 bps and $689 million of currently outstanding commercial paper borrowings having an approximate weighted average interest rate of 5.6% as of Feb. 16. The remainder of proceeds will be used for general corporate purposes.
Exelon is a utility services holding company based in Chicago.
| Issuer: | Exelon Corp.
|
| Amount: | $1.7 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Huntington Securities, Inc., M&T Securities, Inc. and Santander US Capital Markets LLC
|
| Co-managers: | CastleOak Securities, LP, Drexel Hamilton, LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Ballard Spahr LLP
|
| Counsel to underwriters: | Winston & Strawn LLP
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
|
|
| 2029 notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2029
|
| Coupon: | 5.15%
|
| Price: | 99.781
|
| Yield: | 5.199%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call features: | At Treasuries plus 15 bps before Feb. 15, 2029; after at par
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 30161NBM2
|
|
|
| 2034 notes
|
| Amount: | $650 million
|
| Maturity: | March 15, 2034
|
| Coupon: | 5.45%
|
| Price: | 99.835
|
| Yield: | 5.471%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | At Treasuries plus 20 bps before Dec. 15, 2033; after at par
|
| Price talk: | Treasuries plus 145 bps area
|
| Cusip: | 30161NBN0
|
|
|
| 2053 notes add-on
|
| Amount: | $400 million add-on
|
| Maturity: | March 15, 2053
|
| Coupon: | 5.6%
|
| Price: | 97.683
|
| Yield: | 5.765%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | At Treasuries plus 30 bps before Sept. 15, 2052; after at par
|
| Price talk: | Treasuries plus 160 bps area
|
| Cusip: | 30161NBL4
|
| Total issue: | $1.05 billion, including $650 million issued on Feb. 16, 2023
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
