Published on 1/6/2014 in the Prospect News Investment Grade Daily.
New Issue: ComEd prices $650 million five-, 30-year first mortgage bond tranches
By Aleesia Forni
Virginia Beach, Va., Jan. 6 - Commonwealth Edison Co. sold a $650 million two-part issue of first mortgage bonds (A3/A-/BBB+) on Monday, according to a syndicate source and a filing with the Securities and Exchange Commission.
The deal included $300 million of 2.15% first mortgage bonds, series 115, due Jan. 15, 2019 priced with a spread of Treasuries plus 50 basis points, or 99.778 to yield 2.197%.
A second tranche was $350 million of 4.7% first mortgage bonds, series 116, sold at Treasuries plus 80 bps.
The 4.7% bonds mature on Jan. 15, 2044 and were priced at 99.967 to yield 4.702%.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used to refinance $17 million of the company's 5.85% bonds due Jan. 15, 2014 and $600 million of its first mortgage 1.625% bonds due Jan. 15, 2014 and for general corporate purposes.
ComEd is an electricity provider based in Chicago. It is a subsidiary of Exelon Corp.
| Issuer: | Commonwealth Edison Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $650 million
|
| Joint bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc.
|
| Senior co-manager: | KeyBanc Capital Markets Inc.
|
| Co-managers: | Apto Partners, LLC, C.L. King & Associates, Inc., Drexel Hamilton, LLC
|
| Trade date: | Jan. 6
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: BBB+
|
|
|
| Bonds due 2019
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2019
|
| Coupon: | 2.15%
|
| Price: | 99.778
|
| Yield: | 2.197%
|
| Spread: | Treasuries plus 50 bps
|
| Make-whole call: | Treasuries plus 10 bps prior to Dec. 15, 2018, then callable at par
|
|
|
| Bonds due 2044
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2044
|
| Coupon: | 4.7%
|
| Price: | 99.967
|
| Yield: | 4.702%
|
| Spread: | Treasuries plus 80 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to July 15, 2043, then callable at par
|
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