PECO Energy Company (PECO) announced today it has agreed to sell $300 million of First Mortgage Bonds maturing on October 15, 2013, with a coupon of 5.60 percent.
The offering is being led by Banc of America Securities LLC, Morgan Stanley, and Scotia Capital as joint book-runners. The co-managers for the deal are BNP Paribas Securities Corp., KeyBanc Capital Markets, Lazard Capital Markets, RBS Greenwich Capital, SunTrust Robinson Humphrey, Inc., Loop Capital Markets, LLC, Carbrera Capital Markets, LLC and Siebert Capital Markets. The sale is scheduled to close on October 2, 2008.
PECO will use the net proceeds from the sale of the bonds to refinance short-term debt.
The bonds are expected to be rated "A2" by Moody's Investors Service, "A" by Standard & Poor's Rating Service and "A" 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 Any ratings can be revised upward or downward or withdrawn at any time by a rating agency if it decides the circumstances warrant that change.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 bonds 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 from Banc of America Securities LLC, 100 West 33rd Street, 3rd Floor, New York, NY 10001, Attention: Prospectus Department, (800) 294-1322; Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, New York, 10014, Attention: Prospectus Department, (866) 718-1649, or Scotia Capital (USA) Inc., One Liberty Plaza, 165 Broadway - 25th Floor, New York, New York, 10006, Attention: Cora Cruz, (212) 225-5501. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities.
Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE:EXC). PECO serves 1.6 million electric and 480,000 natural gas customers in southeastern Pennsylvania and employs about 2,500 people in the region. PECO delivered 78.5 billion cubic feet of natural gas and 39.9 billion kilowatt-hours-hours of electricity in 2007. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.
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