Exelon announced a private placement of $900 million in convertible senior notes due 2029, with an option for initial investors to purchase an additional $100 million. The notes will convert into common stock at a specified conversion price, giving investors upside while providing Exelon with lower‑cost capital.
The proceeds will be used to refinance or repay existing debt and to fund the company’s $38 billion capital‑expenditure program for 2025‑2028, which is heavily weighted toward transmission and grid‑modernization projects that support the growing demand from data centers and the broader energy transition.
Exelon’s Q3 2025 earnings showed a $0.86 EPS, beating the $0.78 consensus by $0.08, driven by higher rates, a mild storm season, and effective cost control. Revenue of $6.71 billion also topped the $6.48 billion forecast, reflecting strong demand in core distribution segments.
Management reiterated its guidance for 2025 operating earnings of $2.64‑$2.74 per share and reaffirmed a 5‑7 % annualized earnings growth target through 2028. CEO Calvin Butler highlighted the company’s disciplined funding strategy and the importance of the capital plan for maintaining competitive advantage in a data‑center‑heavy market.
Analysts noted that while the convertible notes add leverage, the proceeds are earmarked for debt reduction and strategic investments, mitigating dilution concerns. The market reaction was a modest pre‑market dip, reflecting investor caution about increased leverage, but the overall outlook remains supportive of Exelon’s long‑term growth strategy.
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