Exelon Corp. subsidiary ComEd sold $600 million in first mortgage bonds, with some of the proceeds to be used for a portion of $2.1 billion in total contributions to the parent's defined benefit pension plans in 2011, confirmed ComEd spokeswoman Arlana Johnson.
The bonds are set to mature on Jan. 15, 2014, with a coupon of 1.625%.
ComEd participates in five of Exelon's seven pension plans, Ms. Johnson said in an e-mailed response to questions. Exelon had $12.1 billion in retirement assets, including $8.66 billion in defined benefit assets, as of Sept. 30, according to Pensions & Investments data.
Ms. Johnson said in the e-mail that Exelon expects the remainder of the contribution will be funded by $500 million from cash from operations, $850 million from depreciation tax benefits included in the Small Business Jobs Act passed last year by Congress and $750 million from the tax benefits of making the contribution.
“Due to the timing of the tax benefits to be received by ComEd, the $600 million bond offering net proceeds initially will be used to fund a portion of the first quarter contribution,” she said.