ComEd 2006 Annual Report Download - page 126

Cash Flows from Financing Activities
Cash flows provided by (used in) financing activities for 2006 and 2005 by registrant were as
follows:
2006 2005
Exelon ................................................................. $(1,989) $ (19)
Generation ............................................................. (1,050) 93
ComEd ................................................................ (96) 240
PECO ................................................................. (693) (500)
Debt. Debt activity for 2006 by registrant was as follows:
Registrant Debt issued in 2006 Use of proceeds
ComEd $325 million of First Mortgage 5.90% Bonds,
Series 103, due March 15, 2036
Used to supplement working capital
previously used to refinance amounts that
ComEd used to repay bonds and notes.
ComEd $300 million of First Mortgage 5.95% Bonds,
Series 104, due August 15, 2016
Used to repay commercial paper and for
other general corporate purposes.
ComEd Additional $115 million of First Mortgage
5.95% Bonds, Series 104, due August 15,
2016
Used to repay bonds at maturity.
ComEd $345 million of First Mortgage 5.40% Bonds,
Series 105, due December 15, 2011
Used to repay borrowings under ComEd’s
revolving credit agreement which had been
used to repay bonds and to refinance notes.
PECO $300 million of First Mortgage Bonds 5.95%
Series, due October 1, 2036
Used to repay commercial paper and for
other general corporate purposes.
On March 7, 2005, Exelon entered into a $2 billion term loan agreement. The loan proceeds were
used to fund discretionary contributions of $2 billion to Exelon’s pension plans, including contributions
of $842 million, $803 million and $109 million by Generation, ComEd and PECO, respectively. To
facilitate the contributions by Generation, ComEd and PECO, Exelon contributed the corresponding
amounts to the capital of each company. On April 1, 2005, Exelon entered into a $500 million term loan
agreement that was subsequently fully borrowed to reduce the $2 billion term loan. During the second
quarter of 2005, $200 million of the $500 million term loan, as well as the remaining $1.5 billion
balance on the $2 billion term loan described above, were repaid with the net proceeds received from
the issuance of the long-term senior notes discussed below. See Note 11 of the Combined Notes to
Consolidated Financial Statements for further discussion.
On June 9, 2005, Exelon issued and sold $1.7 billion of senior debt securities pursuant to its
senior debt indenture, dated as of May 1, 2001, consisting of $400 million of 4.45% senior notes due
2010, $800 million of 4.90% senior notes due 2015 and $500 million of 5.625% senior notes due 2035.
The net proceeds from the sale of the notes were used to repay the $1.5 billion in remaining principal
due on the $2 billion term loan agreement and $200 million of the $500 million term loan agreement
referenced above. Exelon may redeem some or all of the notes at any time prior to maturity at a
specified redemption price. The notes are unsecured and rank equally with the other senior unsecured
indebtedness of Exelon. Additionally, Exelon settled interest rate swaps for a net payment of $38
million and paid approximately $12 million of fees in connection with the debt offering.
In 2005, ComEd used funding received from $324 million of commercial paper to retire long-term debt.
From time to time and as market conditions warrant, the Registrants may engage in long-term
debt retirements via tender offers, open market repurchases or other viable options to strengthen their
respective balance sheets.
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