PECO Energy talks $375 million first and refunding mortgage bonds

By Cristal Cody

Chicago, Sept. 7 – PECO Energy Co. is planning a $375 million sale of fixed-rate first and refunding mortgage bonds (//A+), according to a 424B2 filing with the Securities and Exchange Commission and additional information from a market source.

The 30-year notes are being talked for a spread in the Treasuries plus 105 basis points to 110 bps area.

The notes have a make-whole call and then a par call a certain number of months before the maturity date.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC are underwriting the offering.

Ballard Spahr LLP and Winston & Strawn LLP are advising the issuer.

Proceeds will be used to refinance at maturity the company’s $300 million first and refunding mortgage bonds with a 1.7% coupon due 2021. Proceeds will also be used for general corporate purposes.

The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.

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