Published on 8/16/2022 in the Prospect News Investment Grade Daily.
New Issue: PECO Energy prices $425 million 4.375% mortgage bonds due 2052
By Marisa Wong
Los Angeles, Aug. 16 – PECO Energy Co. priced $425 million of 4.375% first and refunding mortgage bonds due 2052 (Aa3/A/A+) on Tuesday, according to a 424B5 filing with the Securities and Exchange Commission.
The bonds priced at 99.587 to yield 4.4%, or a spread of 127 basis points over Treasuries.
The bonds feature a make-whole call followed by a par call.
BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC, PNC Capital Markets LLC and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used to refinance outstanding commercial paper having an approximate weighted average interest rate of 2.58% per annum as of Aug. 12 with the remainder to be used for general corporate purposes.
The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.
| Issuer: | PECO Energy Co.
|
| Amount: | $425 million
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| Issue: | First and refunding mortgage bonds
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| Maturity: | Aug. 15, 2052
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC, PNC Capital Markets LLC and Scotia Capital (USA) Inc.
|
| Senior co-manager: | M&T Securities, Inc.
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, C.L. King & Associates, Inc. and Drexel Hamilton, LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Ballard Spahr LLP
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| Counsel to underwriters: | Winston & Strawn LLP
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| Coupon: | 4.375%
|
| Price: | 99.587
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| Yield: | 4.4%
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| Spread: | Treasuries plus 127 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps prior to Feb. 15, 2052; par call after that
|
| Trade date: | Aug. 16
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| Settlement date: | Aug. 23
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| Ratings: | Moody’s: Aa3
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| S&P: A
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| Fitch: A+
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| Distribution: | SEC registered
|
| Cusip: | 693304BE6
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