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Exelon adds big debt in runup to possible state bailout, stock spinoff

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* One thing that has almost completely gotten lost in the shuffle about this Exelon bailout plan is that the company is planning to spin off its power generation unit later this year and is naturally hoping to juice up the potential stock price. A state deal would most definitely help them do that. Here’s Steve Daniels

Exelon has struck an $885 million deal to buy out its nuclear partnership with a French utility giant, removing one impediment to quickly separating into two companies.

But the deal with EDF adds $880 million in debt to Exelon’s balance sheet, all of which will be shifted to the financially weaker power-generation business once the company spins it off from its regulated utilities, including Chicago’s Commonwealth Edison. […]

British banking giant Barclays is providing Exelon with an $880 million 364-day term loan to finance the EDF transaction, according to a Securities & Exchange Commission filing. The loan is being made to Exelon Generation, the company’s power-plant unit, rather than the holding company.

As of June 30, Exelon Generation had $1.2 billion in debt due within a year, according to a different SEC filing, so this amount nearly doubles that total. In addition, ExGen has $4.6 billion in long-term debt.

* Meanwhile, here’s the governor’s chief of staff…


Climate change is here, it’s getting worse, it’s not a niche political issue but an every day concern that has real impacts on health, business and the quality of our lives. https://t.co/71Ci7LQIhx

— Anne Caprara (@anacaprana) August 9, 2021

* More…

* The infrastructure bill could boost utility stocks, and these are Bank of America’s top picks

* Springfield Dems have to risk upsetting allies to pass energy bill - Organized labor and environmentalists remain bitterly opposed on issues keeping Pritzker’s green-energy bill from enactment. Legislators know now they will have to, well, legislate.

* Pritzker urges lawmakers to act on energy bill

* Joyce: ‘Closing our nuclear plants is something our communities cannot afford or survive’

posted by Rich Miller
Monday, Aug 9, 21 @ 1:33 pm

Comments

  1. I’m proud of the Governor doing his part to try and stop climate change. It’s so depressing to read these reports, see the effects like all these wild fires, and watch how many other rolls attack the ones who try to do something. It’s exhausting and honestly I’ve cut down on a lot of news.

    Guess this is how we people felt during the Cold War and the possibility of nuclear annihilation.

    Comment by ItsMillerTime Monday, Aug 9, 21 @ 1:57 pm

  2. Yes. Tweeting about climate change will get the Gov’s bill passed ASAP

    Comment by Wow Monday, Aug 9, 21 @ 2:05 pm

  3. Does this start the count down clock started for the bankrupcy proceedings?

    Loading up the generation unit with a bunch of debt that it could have difficulty paying off, sounds like a recipe for failure and bankrupcy.

    Comment by Huh? Monday, Aug 9, 21 @ 2:59 pm

  4. Ah, Exelon is using the classic plan of loading the distressed company (“ExGen”—not to be confused with “Star Trek—Next Gen”) with debt, then spinning it off. Sounds like a boon to (future) bankruptcy lawyers!

    Comment by Not a Superstar Monday, Aug 9, 21 @ 3:01 pm

  5. The Daniels article is spot-on. Who would have put their chips on Democrats opposing climate policies in a deep blue state in order to defend non-union coal plants?

    Comment by Ok Monday, Aug 9, 21 @ 3:46 pm

  6. Looks like I have a stock to short!

    Comment by Moved East Monday, Aug 9, 21 @ 4:08 pm

  7. Sen Joyce is correct: Communities and regions around our Power Plants can ill afford their closing. ALL our Power Plants - be they be they in Central ILL, Southern ILL, or wherever, are needed. Those Plants can stay open by adding resources in ILL - not by subsidizing unneeded debt &/or EdF.

    Comment by Joe Monday, Aug 9, 21 @ 9:17 pm

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