By Wendy Van Sickle
Columbus, Ohio, May 17 – PECO Energy Co. sold a $350 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 4.6% coupon at 99.277 to yield 4.645%, or Treasuries of 147 basis points.
The notes have a make-whole call with a Treasuries plus 25 bps premium and then a par call six months before the maturity date.
Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., MUFG, PNC Capital Markets LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to refinance at maturity the company’s $350 million first and refunding mortgage bonds with a 2.375% coupon due 2022 and for general corporate purposes.
The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.
| Issuer: | PECO Energy Co.
|
| Amount: | $350 million
|
| Issue: | First and refunding mortgage bonds
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| Maturity: | May 15, 2052
|
| Bookrunners: | Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., MUFG, PNC Capital Markets LLC and Wells Fargo Securities LLC
|
| Senior co-managers: | Huntington Securities Inc. and Siebert Williams Shank & Co. LLC
|
| Co-managers: | AmeriVet Securities, Inc., Great Pacific Securities and MFR Securities, Inc.
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Ballard Spahr LLP
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| Counsel to underwriters: | Winston & Strawn LLP
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| Coupon: | 4.6%
|
| Price: | 99.277
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| Yield: | 4.645%
|
| Spread: | Treasuries plus 147 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Nov. 15, 2051; par call thereafter
|
| Trade date: | May 17
|
| Settlement date: | May 24
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
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| Fitch: A+
|
| Distribution: | SEC registered
|
| Cusip: | 693304BD8
|
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