Pepco tenders for 6.125% notes, expects to call 5.9% notes, 6% notes

By Angela McDaniels

Tacoma, Wash., Oct. 5 - Pepco Holdings, Inc. began a tender offer to purchase any and all of its $121,094,000 of 6.125% senior notes due 2017, according to a company news release.

The tender offer will expire at 5 p.m. ET on Oct. 12.

The purchase price for each $1,000 principal amount of notes is $1,210. Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Oct. 13.

The company will use a portion of the proceeds from its issuance of $250 million of 2.7% notes due 2015 to fund the tender offer. The remaining proceeds are expected to be used to redeem all or a portion of Pepco's $200 million 5.9% senior notes due 2016 and/or $200 million 6% senior notes due 2019.

The offer is subject to some conditions, but it is not conditioned on the tender of a minimum principal amount of notes.

The dealer manager is Citi (800 558-3745 or 212 723-6106). The information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 795-2200).

Pepco Holdings, based in Washington, D.C., delivers electricity and natural gas through subsidiaries Pepco, Delmarva Power and Atlantic City Electric as well as retail energy products and services through Pepco Energy Services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.