Constellation Energy plans to sell two fixed-rate senior notes

By Mary-Katherine Stinson

Lexington, Ky., Sept. 26 – Constellation Energy Generation LLC plans to sell two tranches of fixed-rate senior notes, according to a 424B5 filing with the Securities and Exchange Commission.

The notes feature a make-whole call, followed by a par call.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and RBC Capital Markets, LLC are leading the sale. MUFG Securities Americas Inc. and PNC Capital Markets LLC are also bookrunners.

Loop Capital Markets LLC and Roberts & Ryan, Inc. are co-managers.

U.S. Bank Trust Co., NA will be the trustee.

Ballard Spahr LLP is advising the issuer. Winston & Strawn LLP is working as counsel for the underwriters.

Proceeds will be used to fund a portion of the purchase price of Constellation’s acquisition of NRG South Texas, LP and to pay certain fees and expenses relating to the acquisition. Subject to the terms of the equity purchase agreement, the purchase price is $1.75 billion, with an effective purchase price of $1.4 billion net of the present value of future tax benefits to Constellation. The transaction will be financed with a combination of cash and debt, and the deal is expected to be completed by year-end, following regulatory approval.

The remainder of the 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.

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