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PECO Energy sells $325M of mortgage bonds

PECO Energy Co. sold $325 million of its 3% first and refunding mortgage bonds due Sept. 15, 2049, according to a Sept. 3 free writing prospectus.

Interest on the bonds is payable every March 15 and Sept. 15, beginning March 15, 2020. The bonds have a spread to benchmark Treasury of 110 basis points and were rated Aa3 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings.

The Exelon Corp. subsidiary plans to use net proceeds to satisfy short-term borrowings and for general corporate purposes. As of Aug. 28, the utility had $32 million in outstanding short-term borrowings bearing an average interest rate of 2.13%. Pending such use, PECO Energy said it may temporarily invest the proceeds in short-term interest-bearing obligations.

BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and SMBC Nikko Securities America Inc. served as joint book-running managers. Santander Investment Securities Inc. acted as the sole senior co-manager. Academy Securities Inc., Telsey Advisory Group LLC and The Williams Capital Group LP were the co-managers.