Back to top

Analyst Blog

Exelon Corporation's (EXC - Analyst Report) 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, 2012.

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. (CPL - Snapshot Report) and Companhia Paranaense de Energia (ELP - Analyst Report) with a Zacks Rank #1 (Strong Buy), and ALLETE, Inc. (ALE - Snapshot Report) with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%