Exelon to offer $900 million in convertible senior notes

CHICAGO - Exelon Corporation (NASDAQ:EXC) announced Monday its intention to offer $900 million in convertible senior notes due 2029 through a private placement to qualified institutional buyers under Rule 144A of the Securities Act. The utility giant, currently trading at $47.12 and with a market capitalization of $47.6 billion, is approaching its 52-week high of $48.51.

The utility company also plans to grant initial purchasers an option to buy up to an additional $100 million in convertible notes within a 13-day period from the initial issuance date. According to InvestingPro data, Exelon already operates with a significant debt burden, carrying nearly $50 billion in total debt with a debt-to-equity ratio of 1.78.

The convertible notes will be senior unsecured obligations with interest payable semiannually. Holders will have conversion options during certain periods and under specific conditions. When notes are converted, Exelon will pay cash up to the aggregate principal amount, with the remainder settled in cash, common stock, or a combination of both at the company’s discretion.

Proceeds from the offering will be used for debt repayment or refinancing and general corporate purposes, according to the company’s statement. This debt management strategy comes as Exelon maintains a P/E ratio of 16.82, which InvestingPro analysis indicates is high relative to its near-term earnings growth potential.

The Fortune 200 company serves more than 10.7 million customers through six regulated transmission and distribution utilities including Atlantic City Electric, Baltimore Gas and Electric, Commonwealth Edison, Delmarva Power & Light, PECO Energy Company, and Potomac Electric Power Company.

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 applicable exemptions from registration requirements.

The offering is subject to market and other conditions, as stated in the company’s press release.

In other recent news, Exelon Corporation reported its third-quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $0.86, compared to the forecasted $0.78. The company also exceeded revenue forecasts, reporting $6.71 billion against an anticipated $6.48 billion. These results reflect positively on Exelon’s financial performance, marking a 10.26% surprise in EPS. Additionally, Exelon announced executive changes, with David Glockner, Executive Vice President of Compliance, Audit and Risk, set to depart in January 2026. Jeanne Jones, currently the Chief Financial Officer, will take on additional responsibilities, becoming Executive Vice President, Chief Finance Officer, Audit and Risk. In another development, Elizabeth Pitts-Madonna has been appointed as the new Chief Human Resources Officer, succeeding Denise Galambos, who is retiring. Furthermore, Exelon disclosed a temporary blackout period for its Employee Savings Plan due to a vendor transition, scheduled from December 3 to the week of December 22, 2025. These developments highlight significant operational and leadership changes within the company.

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