Published on 2/21/2023 in the Prospect News Investment Grade Daily.
New Issue: Constellation Energy sells $1.35 billion of five-, 10-year notes
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – Constellation Energy Generation LLC priced $1.35 billion of notes in two parts (Baa2/BBB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $750 million of 5.6% five-year notes at 99.986 to yield 5.603% or a spread over Treasuries of 143 basis points.
Constellation also priced $600 million of 5.8% 10-year notes at 99.976 to yield 5.803%, or 185 bps over Treasuries.
Barclays, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. are leading the sale. SMBC Nikko Securities Americas, Inc. and Truist Securities, Inc. are also bookrunners.
Proceeds will be used for general corporate purposes.
Formerly Exelon Generation Co., LLC, Constellation Energy Generation is a subsidiary of Constellation Energy Corp., a power generation and customer-facing energy business based in Kennett Square, Pa.
| Issuer: | Constellation Energy Generation LLC
|
| Amount: | $1.35 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities Americas, Inc. and Truist Securities, Inc.
|
| Senior co-managers: | Huntington Securities, Inc., M&T Securities, Inc. and Santander US Capital Markets LLC
|
| Co-manager: | Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Ballard Spahr LLP
|
| Counsel to underwriters: | Winston & Strawn LLP
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 24
|
| Ratings (expected): | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
|
| Amount: | $750 million
|
| Maturity: | March 1, 2028
|
| Coupon: | 5.6%
|
| Price: | 99.986
|
| Yield: | 5.603%
|
| Spread: | Treasuries plus 143 bps
|
| Call option: | Make-whole at Treasuries plus 25 bps until Feb. 1, 2028, followed by par call
|
| Cusip: | 210385AB6
|
|
|
| 2033 notes
|
| Amount: | $600 million
|
| Maturity: | March 1, 2033
|
| Coupon: | 5.8%
|
| Price: | 99.976
|
| Yield: | 5.803%
|
| Spread: | Treasuries plus 185 bps
|
| Call option: | Make-whole at Treasuries plus 30 bps until Dec. 1, 2032, followed by par call
|
| Cusip: | 210385AC4
|
|
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