Exelon to price $1 billion of equity units talked to yield 6.75%-7.25%, up 20%-25%

By Rebecca Melvin

New York, June 10 – Exelon Corp. announced that it is selling $1 billion of equity units, or 20 million units at $50 each, that were seen pricing after the market close on Wednesday and talked to yield 6.75% to 7.25% with an initial conversion premium of 20% to 25%, according to market sources.

Exelon is also offering up to 50 million shares of its common stock.

Proceeds of both offerings will be used to finance a portion of the Pepco Holdings Inc. acquisition announced April 30 and for general corporate purposes.

There is a greenshoe for up to $150 million of additional equity units for the registered, off-the-shelf deal, which was being sold via bookrunners Barclays, Goldman Sachs & Co., Citigroup Global Markets Inc. and Wells Fargo Securities LLC.

The units are mandatorily convertible June 1, 2017.

Exelon is a Chicago-based electric and gas utility.

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