EXELON CORP
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
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9. Debt and Credit Agreements
- Debt and Credit Agreements (All Registrants)
Short-Term Borrowings
Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. PECO meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. PHI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and borrowings from the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit.
Commercial Paper
The following table reflects the Registrants' commercial paper programs supported by the revolving credit agreements at September 30, 2024 and December 31, 2023.
| Outstanding Commercial Paper at | Average Interest Rate onCommercial Paper Borrowings at | |||
|---|---|---|---|---|
| Commercial Paper Issuer | September 30, 2024 | December 31, 2023 | September 30, 2024 | December 31, 2023 |
| Exelon(a) | $531 | $1,624 | 4.94% | 5.58% |
| ComEd | $73 | $202 | 4.90% | 5.53% |
| PECO | $— | $165 | —% | 5.57% |
| BGE | $— | $336 | —% | 5.59% |
| PHI(b) | $218 | $394 | 4.94% | 5.60% |
| Pepco | $49 | $132 | 4.93% | 5.59% |
| DPL | $— | $63 | —% | 5.60% |
| ACE | $169 | $199 | 4.94% | 5.60% |
(a)Exelon Corporate had $240 million and $527 million in outstanding commercial paper borrowings at September 30, 2024 and December 31, 2023, respectively.
(b)Represents the consolidated amounts of Pepco, DPL, and ACE.
Revolving Credit Agreements
On August 29, 2024, Exelon Corporate and each of the Utility Registrants amended and restated their respective syndicated revolving credit facility, extending the maturity date to August 29, 2029. The following table reflects the credit agreements:
| Borrower | Aggregate Bank Commitment | Interest Rate |
|---|---|---|
| Exelon Corporate | $900 | SOFR plus 1.275% |
| ComEd | $1,000 | SOFR plus 1.000% |
| PECO | $600 | SOFR plus 0.900% |
| BGE | $600 | SOFR plus 0.900% |
| Pepco | $300 | SOFR plus 1.075% |
| DPL | $300 | SOFR plus 1.000% |
| ACE | $300 | SOFR plus 1.000% |
Exelon Corporate and the Utility Registrants hadno outstanding amounts on the revolving credit facilities as of September 30, 2024.
The Utility Registrants have credit facility agreements, arranged at minority and community banks, which may be utilized to issue letters of credit. The facility agreements have aggregate commitments of $40 million, $40 million, $15 million, $15 million, $15 million, and $15 million, at ComEd, PECO, BGE, Pepco, DPL, and ACE, respectively. These facilities expire on October 3, 2025.
See Note 16 — Debt and Credit Agreements of the 2023 Form 10-K for additional information on the Registrants' credit facilities.
Short-Term Loan Agreements
On March 23, 2017, Exelon Corporate entered into a term loan agreement for $500 million. The loan agreement was renewed in the first quarter of 2024 and was bifurcated into two tranches of $350 million and $150 million on March 14, 2024. The agreements will expire on March 14, 2025. Pursuant to the loan agreements, loans made thereunder bear interest at a variable rate equal to SOFR plus 1.05% and all indebtedness thereunder is unsecured. The loan agreement is reflected in Exelon's Consolidated Balance Sheets within Short-term borrowings.
On May 9, 2023, ComEd entered into a 364-day term loan agreement for $400 million with a variable rate equal to SOFR plus 1.00% and an expiration date of May 7, 2024. On May 1, 2024, ComEd entered into an agreement to extend the loan through the expiration date of June 28, 2024. The original proceeds from the loan were used to repay outstanding commercial paper obligations and for general corporate purposes. The balance of the loan was repaid on May 16, 2024. Refer to the Issuance of Long-term Debt Table below for further information.
Long-Term Debt
Issuance of Long-Term Debt
During the nine months ended September 30, 2024, the following long-term debt was issued:
| Company | Type | Interest Rate | Maturity | Amount | Use of Proceeds |
|---|---|---|---|---|---|
| Exelon | Notes | 5.15% | March 15, 2029 | $650 | Repay Exelon SMBC Term Loan, outstanding commercial paper, and for general corporate purposes. |
| Exelon | Notes | 5.45% | March 15, 2034 | $650 | Repay Exelon SMBC Term Loan, outstanding commercial paper, and for general corporate purposes. |
| Exelon | Notes | 5.60% | March 15, 2053 | $400 | Repay Exelon SMBC Term Loan, outstanding commercial paper, and for general corporate purposes. |
| ComEd | First Mortgage Bonds | 5.30% | June 1, 2034 | $400 | Repay existing indebtedness, repay outstanding commercial paper obligations, and to fund other general corporate purposes. |
| ComEd | First Mortgage Bonds | 5.65% | June 1, 2054 | $400 | Repay existing indebtedness, repay outstanding commercial paper obligations, and to fund other general corporate purposes. |
| PECO | First Mortgage Bonds | 5.25% | September 15, 2054 | $575 | Refinance outstanding commercial paper and for general corporate purposes |
| BGE | Notes | 5.30% | June 1, 2034 | $400 | Repay outstanding commercial paper obligations and for general corporate purposes |
| BGE | Notes | 5.65% | June 1, 2054 | $400 | Repay outstanding commercial paper obligations and for general corporate purposes |
| Pepco | First Mortgage Bonds | 5.20% | March 15, 2034 | $375 | Refinance existing indebtedness, refinance outstanding commercial paper obligations, and for general corporate purposes. |
| Pepco | First Mortgage Bonds | 5.50% | March 15, 2054 | $300 | Refinance existing indebtedness, refinance outstanding commercial paper obligations, and for general corporate purposes. |
| DPL | First Mortgage Bonds | 5.24% | March 20, 2034 | $100 | Repay existing indebtedness and for general corporate purposes. |
| DPL | First Mortgage Bonds | 5.55% | March 20, 2054 | $75 | Repay existing indebtedness and for general corporate purposes. |
| ACE | First Mortgage Bonds | 5.55% | March 20, 2054 | $75 | Repay existing indebtedness and for general corporate purposes. |
| ACE | First Mortgage Bonds | 5.29% | August 28, 2034 | $75 | Repay existing indebtedness and for general corporate purposes. |
| ACE | First Mortgage Bonds | 5.49% | August 28, 2039 | $100 | Repay existing indebtedness and for general corporate purposes. |
Debt Covenants
As of September 30, 2024, the Registrants are in compliance with debt covenants.
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