PECO Energy Co. sold $325 million of 3.9% first and refunding mortgage bonds due March 1, 2048. The transaction is expected to settle Sept. 11.
The bonds have a spread to benchmark Treasury of 105 basis points. Interest is payable March 1 and Sept. 1, starting March 1, 2019. The securities were rated Aa3 by Moody's, A- by S&P Global Ratings and A by Fitch Ratings, according to SEC filings.
The utility plans to use the proceeds to satisfy $246 million of short-term borrowings from the Exelon Corp. intercompany money pool and for general corporate purposes.
CIBC World Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and RBC Capital Markets LLC acted as joint book-running managers; Santander Investment Securities Inc. served as senior co-manager; and Huntington Investment Co., MFR Securities Inc. and Penserra Securities LLC acted as co-managers.
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