Exelon enters $7.22 million 364-day bridge loan, amends revolver

By Marisa Wong

Madison, Wis., June 4 - Exelon Corp. entered into a $7,221,000,000 364-day senior unsecured bridge term loan agreement on May 30, according to an 8-K filing with the Securities and Exchange Commission.

As previously announced, Exelon entered into a commitment letter for the bridge loan on April 29 in connection with its proposed acquisition of Pepco Holdings, Inc.

Barclays Bank plc and Goldman Sachs Bank USA are the joint lead arrangers and joint lead bookrunners for the bridge agreement, with Barclays as administrative agent and Goldman Sachs as syndication agent.

If the commitments under the bridge loan are funded, Exelon will pay interest at Libor plus an applicable margin based on its debt ratings. The applicable margin ranges from 112.5 basis points to 200 bps initially.

Beginning 90 days after the closing date, the applicable margin steps up to 137.5 bps to 225 bps. Beginning 180 days after the closing date, the margin ranges from 162.5 bps to 250 bps. Beginning 270 days after the closing date, the margin ranges from 187.5 bps to 275 bps.

In connection with the bridge agreement, Exelon will pay a ticking fee of 22.5 bps. The ticking fee is also based on Exelon's debt ratings and ranges from 12.5 bps to 35 bps.

If loans under the bridge agreement are funded, Exelon will also pay duration fees as follows: 50 bps 90 days after the closing date, 75 bps 180 days after the closing date and 100 bps 270 days after the closing date.

Amendments

Also on May 30, Exelon and subsidiaries Exelon Generation Co., LLC, PECO Energy Co. and Baltimore Gas and Electric Co. entered into amendments to each of their respective revolving credit facilities.

The amendments extend the maturity date of each revolving credit facility to May 30, 2019 for all extending lenders.

Under the amendments, Exelon, Exelon Generation, PECO and Baltimore Gas have access to unsecured revolving credit facilities with aggregate bank commitments of $500 million, $5.3 billion, $600 million and $600 million, respectively, into August 2018 and aggregate bank commitments of $500 million, $5.1 billion, $600 million and $600 million, respectively, into May 2019.

Exelon is a Chicago-based electric and gas utility. Pepco is an energy delivery company based in Washington, D.C.

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