Atlantic City Electric sells $150 million mortgage bonds; MetLife buys $213 million notes

By Lisa Kerner

Charlotte, N.C., Dec. 2 – Atlantic City Electric Co. agreed to sell $150 million of first mortgage bonds, 3.5% series, due Dec. 1, 2025.

Proceeds will be used to repay the company’s outstanding commercial paper and for general corporate purposes.

Closing is expected to occur on Dec. 8.

Atlantic City Electric entered into a bond purchase agreement with certain institutional investors on Dec. 1, according to an 8-K filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC acted as the lead placement agent.

The electric company is based in Newark, Del.

MetLife, Inc. and several of its private placement clients have invested $213 million in 3.31% senior notes for the refinancing of the I-595 highway in southern Florida.

The notes priced at 155 basis points over a seven-year Treasury bond, have an average life of about seven years and reach final maturity in 2031.

The final bond was oversubscribed with 15 private investors participating, according to a news release.

MetLife and its clients are the lead investors in the $827 million total offering.

Proceeds will be used to retire a portion of the project’s outstanding bank debt and repay other loans.

MetLife is a New York-based life insurance company.

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