Exelon subsidiary, ComEd, has raised $600 million in a sale of first mortgage bonds, Pensions & Investments reports. The bonds carry a coupon rate of 1.625% and are due to mature on Jan. 15, 2014.
The U.S. nuclear operator intends to use the proceeds for a portion of $2.1 billion in total contributions to the parent’s defined benefit pension plans in 2011. The remainder of the contribution will be funded by $500 million from operations, $850 million from depreciation tax benefits and $750 million from the tax benefits of making the contribution.
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