Exelon to fund $860 million buyout of John Deere Renewables with debt

By Angela McDaniels

Tacoma, Wash., Aug. 31 - Exelon Corp. will fund its upcoming acquisition of John Deere Renewables, LLC with debt issued by Exelon Generation Co., LLC, according to a series of slides included in an 8-K filing with the Securities and Exchange Commission.

The purchase price is $860 million with a provision for up to an additional $40 million once construction on advanced development projects begins.

The company does not plan to fund the acquisition through the issuance of equity.

Under the terms of agreement, Exelon will acquire John Deere Renewables' 735 megawatts of operating wind capacity in eight states from Deere & Co., and it has the option to pursue approximately 1,468 megawatts of new wind projects that are in various stages of development.

The acquisition is expected to close in the fourth quarter.

Exelon is a Chicago-based electric utility.

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