By Andrea Heisinger
New York, Aug. 30 - Commonwealth Edison Co. sold $600 million of first mortgage bonds (Baa1/A-/BBB+) in two tranches on Tuesday, said a source who worked on the trade.
The $250 million of five-year bonds was sold at par to yield 1.95% with a spread of Treasuries plus 103 basis points. The tranche priced at the tight end of guidance, which was in the 105 bps area, plus or minus 2 bps.
The five-year paper has a make-whole call at Treasuries plus 15 bps prior to Aug. 1, 2016 and can be redeemed afterward at par.
A second part was $350 million of 3.4% 10-year notes priced at 99.967 to yield 3.404% with a spread of 123 bps over Treasuries. These notes were sold at the lowest end of talk in the 125 bps area, plus or minus 2 bps.
There is a make-whole call at 20 bps over Treasuries before June 1, 2021, and the notes can be called after that date at par.
BNP Paribas Securities Corp., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the active bookrunners. Passive bookrunners were Deutsche Bank Securities Inc. and Samuel A. Ramirez & Co. Inc.
Co-managers were CIBC World Markets Corp. and PNC Capital Markets LLC.
Proceeds are being used to refinance $191 million of three series of variable-rate tax-exempt bonds, to refinance $345 million of 5.4% first mortgage bonds due on Dec. 15 and for general corporate purposes.
The electric subsidiary of Exelon Corp. is based in Chicago.
| Issuer: | Commonwealth Edison Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $600 million
|
| Bookrunners: | BNP Paribas Securities Corp., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC (active), Deutsche Bank Securities Inc., Samuel A. Ramirez & Co. Inc. (passive)
|
| Co-managers: | CIBC World Markets Corp., PNC Capital Markets LLC
|
| Trade date: | Aug. 30
|
| Settlement date: | Sept. 7
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 1, 2016
|
| Coupon: | 1.95%
|
| Price: | Par
|
| Yield: | 1.95%
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Make-whole at Treasuries plus 15 bps before Aug. 1, 2016, after at par
|
| Price talk: | 105 bps area, plus or minus 2 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | Sept. 1, 2021
|
| Coupon: | 3.4%
|
| Price: | 99.967
|
| Yield: | 3.404%
|
| Spread: | Treasuries plus 123 bps
|
| Call: | Make-whole at Treasuries plus 20 bps before June 1, 2021, after at par
|
| Price talk: | 125 bps area, plus or minus 2 bps
|
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