By Aleesia Forni
Virginia Beach, Va., Sept. 16 - Peco Energy Co. sold a $550 million two-part issue of first and refunding mortgage bonds (A1/A-/A) on Monday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The deal included $300 million 1.2% mortgage bonds due Oct. 15, 2016 with a spread of Treasuries plus 45 basis points, or at 99.856 to yield 1.248%.
A $250 million tranche of 4.8% bonds due Oct. 15, 2043 priced at Treasuries plus 93 bps.
Pricing was at 99.633 to yield 4.823%.
The joint bookrunners were BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Mizuho Securities and RBC Capital Markets.
Proceeds will be used to pay at maturity $300 million 5.6% first mortgage bonds due Oct. 15, 2013 and for general corporate purposes. Any remaining proceeds are expected to be temporarily invested in short-term interest-bearing obligations.
The electric and natural gas transmission subsidiary of Exelon is based in Philadelphia.
| Issuer: | Peco Energy Co.
|
| Issue: | First and refunding mortgage bonds
|
| Amount: | $550 million
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC
|
| Senior co-managers: | BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc.
|
| Co-managers: | Blaylock Robert Van LLC, Muriel Siebert & Co. Inc.
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 23
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Three-year bonds
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2016
|
| Coupon: | 1.2%
|
| Price: | 99.856
|
| Yield: | 1.248%
|
| Spread: | Treasuries plus 45 bps
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2043
|
| Coupon: | 4.8%
|
| Price: | 99.633
|
| Yield: | 4.823%
|
| Spread: | Treasuries plus 93 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
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