) subsidiary Baltimore Gas and Electric Company has priced its
3.35% notes worth $300 million. The 10-year notes will mature on
Jul 1, 2023. This note offering will close on Jun 17, 2013.
Exelon intends to utilize the net proceeds of the issue to repay
a part of its 6.125% notes valued $400 million due on Jul 1, 2013
and use the rest for general corporate purposes.
It is a common practice among the companies to exercise new
issuances to redeem their old debts while minimizing interest
costs and extending repayment tenure.
Exelon and its subsidiaries issue notes from time to time and
accumulate funds for repaying its existing debts and for the
expansion projects. The company's subsidiaries Baltimore Gas and
Electric Company and Exelon Generation Company issued notes in
Aug and Jun 2012. The net proceeds from these issues are used for
general corporate purposes and to finance its debt obligations.
We appreciate Exelon's continuous effort toward minimization of
the debt burden. The company's long-term debt as of Mar 31, 2013
was $16.2 billion, down from $17.2 billion at the end of Dec 31,
Exelon had a cash balance of $679 million as of Dec 31, 2013,
while cash provided by operating activities during first three
months of 2013 was $859 million. The financial strength will
allow the company to pay annual interest of $10 million, which
will arise from the current notes issue.
Exelon currently has a Zacks Rank #3 (Hold). The other stocks in
the industry that are worth considering include
CPFL Energia S.A.
Companhia Paranaense de Energia
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).
ALLETE INC (ALE): Free Stock Analysis Report
CPFL ENERGI-ADR (CPL): Get Free Report
COPEL-ADR PR B (ELP): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
To read this article on Zacks.com click here.