Constellation Energy lifts tender cap for 7% notes to $500 million, cancels offer for 4.55% notes

By Susanna Moon

Chicago, Jan. 21 - Constellation Energy Group, Inc. said that, based on early tender results, it increased the maximum purchase amount for its $700 million of 7% notes due April 1, 2012 and terminated the offer for its $550 million of 4.55% notes due June 15, 2015.

As of 5 p.m. ET on Jan. 20, the early tender date, investors had tendered $484,322,000 principal amount of the 7% notes.

The company will now tender for up to $500 million of the 7% notes, up from $400 million total. The tender offer began on Jan. 6.

The tender offer is a part of Constellation Energy's previously announced commitment to repay $1 billion of debt following the close of its transaction with EDF Group in November.

The offer will end at midnight ET on Feb. 3.

The company said it will pay $1,110 for each $1,000 principal amount of 7% notes, including an early tender payment of $30 for those who tendered by the early tender date.

Constellation said it will also pay accrued interest.

Settlement is expected on Feb. 4.

Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-5912), Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-5384) and RBS Securities Inc. (877 297-9832 or call collect 203 897-6145) are the dealer managers. Global Bondholder Services Corp. is the information agent and depositary (866 540-1500 or call collect 212 430-3774).

Based in Baltimore, Constellation Energy is a supplier of energy products and services to wholesale and retail electric and natural gas customers.

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