Offering is being led by Barclays Capital Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and UBS Securities LLC
– Stephen Heiser –
Exelon Generation Company LLC has announced that it has agreed to sell $600 million of Senior Notes maturing on October 1, 2019, with a coupon of 5.20% and $900 million of Senior Notes maturing on October 1, 2039, with a coupon of 6.25%. The offering is being led by Barclays Capital Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Incorporated, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and UBS Securities LLC who are acting as joint book-running managers. The sale of the Senior Notes is expected to close on September 23, 2009.
Generation will use the net proceeds from the sale to refinance Generation debt being purchased pursuant to its cash tender offer, announced earlier today, for any and all of its $699,975,000 6.95% Notes due June 15, 2011 (CUSIP No. 30161M AB 9) and for general corporate purposes, including a distribution to Exelon Corporation to fund the debt being purchased by Exelon Corporation pursuant to its cash tender offer, announced earlier today, for any and all of its outstanding $500,000,000 6.75% Senior Notes due May 1, 2011 (CUSIP No. 30161N AA 9) and funding Generation’s repurchase of $307,000,000 of pollution-control bonds earlier this month.
The new Generation Senior Notes are expected to be rated “A3” by Moody’s Investors Service, “BBB” by Standard & Poor’s Ratings Services, and “BBB+” by Fitch Ratings. A rating reflects only the views of a rating agency and is not a recommendation to buy, sell, or hold the bonds. Any ratings can be revised upward or downward or withdrawn at any time by a rating agency if it decides the circumstances warrant that change. Each rating should be evaluated independently of any other rating.
A registration statement relating to the Senior Notes has been declared effective by the Securities and Exchange Commission. The offering is being made by means of a prospectus supplement and an accompanying prospectus. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by calling Barclays Capital Inc. at 1-888-603-5847, J.P. Morgan Securities Inc. at 1-212-834-4533, or Morgan Stanley & Co. Incorporated at 1-866-718-1649. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities.