By Wendy Van Sickle
Columbus, Ohio, June 15 – PECO Energy Co. priced $575 million of 4.9% first and refunding mortgage bonds due 2033 (Aa3/A/A+) on Thursday, according to a 424B5 filing with the Securities and Exchange Commission.
The bonds priced at 99.798 to yield 4.926%, or a spread of 120 basis points over Treasuries.
The bonds feature a make-whole call followed by a par call.
BofA Securities, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds will be used to refinance a $50 million term loan maturing in June 2023 bearing interest at 2% and to refinance currently outstanding commercial paper having a weighted average interest rate of 5.228% annually as of June 12 with the remainder for general corporate purposes.
The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.
| Issuer: | PECO Energy Co.
|
| Amount: | $575 million
|
| Issue: | First and refunding mortgage bonds
|
| Maturity: | June 15, 2033
|
| Bookrunners: | BofA Securities, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc.
|
| Senior co-manager: | M&T Securities, Inc.
|
| Co-managers: | Bancroft Capital LLC, Samuel A. Ramirez & Co., Inc. and R. Seelaus & Co., LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Ballard Spahr LLP
|
| Counsel to underwriters: | Winston & Strawn LLP
|
| Coupon: | 4.9%
|
| Price: | 99.798
|
| Yield: | 4.926%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to March 15, 2033; par call after that
|
| Trade date: | June 15
|
| Settlement date: | June 23
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Cusip: | 693304BF3
|
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