By Cristal Cody
Chicago, Sept. 7 – PECO Energy Co. sold a $375 million offering of first and refunding mortgage bonds (Aa3/A/A+) with a 30-year tenor on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a 2.85% coupon at 99.9 to yield 2.855%, or Treasuries of 88 basis points.
A market source had seen the notes talked with a spread in the Treasuries plus 105 bps to 110 bps area on Tuesday morning.
The notes have a make-whole call with a Treasuries plus 15 bps premium and then a par call six 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 the bookrunners.
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.
| Issuer: | PECO Energy Co.
|
| Issue: | First and refunding mortgage bonds
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| Amount: | $375 million
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| Maturity: | Sept. 15, 2051
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| Bookrunners: | 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
|
| Co-managers: | Huntington Securities, Inc., MFR Securities, Inc., Multi-Bank Securities, Inc. and Stern Brothers & Co.
|
| Counsel to issuer: | Ballard Spahr LLP and Winston & Strawn LLP
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| Coupon: | 2.85%
|
| Price: | 99.9
|
| Yield: | 2.855%
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| Spread: | Treasuries plus 88 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until March 15, 2051; par call thereafter
|
| Trade date: | Sept. 7
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| Settlement date: | Sept. 14
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| Ratings: | Moody’s: Aa3
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| S&P: A
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| Fitch: A+
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 105 bps to 110 bps area
|
| Cusip: | 693304BC0
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