Atlantic City Electric Co. issued $350 million of its first mortgage bonds, 4.000% series, due Oct. 15, 2028, according to an Oct. 9 free writing prospectus.
Interest on the bonds is payable every April 15 and Oct. 15 of each year, beginning April 15, 2019.
The bonds have a reoffer spread to benchmark Treasury of 80 basis points and are rated A3 by Moody's, A by S&P Global Ratings and A- by Fitch Ratings.
The Exelon Corp. subsidiary plans to use net proceeds from the offering to refinance at maturity $250 million of its 7.75% first mortgage bonds due Nov. 15, 2018, short-term borrowings, and for general corporate purposes. Pending such use, the company may temporarily invest proceeds in short-term, interest-bearing obligations.
Goldman Sachs & Co. LLC, Mizuho Securities, Wells Fargo Securities and Credit Suisse acted as joint book-running managers. Santander served as senior co-manager, while Ramirez & Co. Inc. and Siebert Cisneros Shank & Co. LLC were co-managers.
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