By Rebecca Melvin
New York, June 12 – Exelon Corp. priced $1 billion of equity units, or 20 million units at $50 each, after the market close Wednesday with a 6.5% distribution rate and a 25% initial conversion premium, according to a term sheet.
Pricing of the registered, off-the-shelf deal came beyond the tight end of talk for the distribution rate, which was 6.75% to 7.25%, and at the tight end of 20% to 25% premium talk.
Exelon also priced 50 million shares of its common stock at $35.00 per share. In connection with the equity offering, Exelon entered into forward sale agreements for the same number of shares with a strike price of $33.95 per share.
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 units deal, which was 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.
| Issuer: | Exelon Corp.
|
| Issue: | Equity units
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | June 1, 2017
|
| Concurrent offering: | 50,000,000 shares of common stock at $35.00 per share
|
| Bookrunners: | Barclays, Goldman Sachs & Co., Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Distribution rate: | 6.5%
|
| Price: | Par, $50
|
| Threshold appreciation premium: 25%
|
| Threshold appreciation price: | $43.75 per share
|
| Minimum settlement rate: | 1.1429 shares
|
| Maximum settlement rate: | 1.4286 shares
|
| Takeover protection: | Yes
|
| Price talk: | 6.75%-7.25%, up 20%-25%
|
| Pricing date: | June 11
|
| Settlement date: | June 17
|
| Stock symbol: | NYSE: EXC
|
| Stock reference price: | $35.00
|
| Stock price: | $37.75 as of close June 11
|
| Distribution: | Registered
|
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