Exelon prices $900 million convertible senior notes offering

CHICAGO - Exelon Corporation (NASDAQ:EXC) has priced an offering of $900 million in convertible senior notes due 2029 with a fixed interest rate of 3.25%, the utility company announced Monday. This new offering adds to Exelon’s existing debt burden, which stood at nearly $50 billion as of the most recent quarter, according to InvestingPro data.

The notes will mature on March 15, 2029, with interest payable semiannually beginning September 15, 2026. Exelon has granted initial purchasers an option to buy up to an additional $100 million in notes within a 13-day period after issuance.

The transaction is expected to close on Wednesday, with net proceeds estimated at approximately $888.8 million, or $987.5 million if the additional purchase option is fully exercised. Exelon plans to use the proceeds for debt repayment or refinancing and general corporate purposes. With a debt-to-equity ratio of 1.78, managing this debt load remains a key focus for the $46.17 billion market cap utility.

The notes will initially be convertible at a rate of 17.5093 shares of common stock per $1,000 principal amount, equivalent to a conversion price of approximately $57.11 per share. This represents a 25% premium over Exelon’s closing stock price on Monday. The premium reflects Exelon’s historically low price volatility, with a beta of 0.55 according to InvestingPro data, making it less prone to sharp price swings than the broader market.

Prior to December 15, 2028, note holders may convert their notes only under certain conditions. After that date until maturity, holders may convert at any time regardless of conditions. Exelon will settle conversions by paying cash up to the aggregate principal amount and may pay the remainder in cash, common stock, or a combination of both.

The offering is being made to qualified institutional buyers under Rule 144A of the Securities Act. The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from registration requirements.

Exelon serves more than 10.7 million customers through six regulated transmission and distribution utilities across the United States.

This article is based on a press release statement from Exelon Corporation.

In other recent news, Exelon Corporation reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.86, compared to the forecasted $0.78. The company’s revenue also exceeded projections, reaching $6.71 billion against an anticipated $6.48 billion. Exelon announced its intention to offer $900 million in convertible senior notes due 2029, with an option for initial purchasers to acquire an additional $100 million within a 13-day period. The company also disclosed that David Glockner, Executive Vice President of Compliance, Audit, and Risk, will depart effective January 1, 2026, with Jeanne Jones assuming additional responsibilities. Additionally, Elizabeth Pitts-Madonna has been appointed as the new Chief Human Resources Officer, succeeding Denise Galambos. Exelon announced a temporary blackout period for its Employee Savings Plan due to a transition to a new vendor, scheduled to begin on December 3, 2025, and expected to conclude during the week of December 22, 2025. These developments reflect significant changes and strategic moves within the company.

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