Excelon Corp (EXC)

[Porgie Tirebiter]

I was wondering why Excelon felt the need to issue new debt, but I guess the terms were irresistable.

ComEd will use the net proceeds from the sale of the bonds as an interim source of liquidity for a planned January 2011 contribution to Exelon-sponsored pension plans in which ComEd participates. ComEd anticipates receiving tax refunds as a result of both the pension contribution and recent federal tax legislation allowing for accelerated depreciation deductions in 2011 and 2012. As a result, the immediate and direct use of the net proceeds to fund the planned contribution will allow those future cash receipts to be available to ComEd to fund capital investment and for general corporate purposes.

At 1.625% it looks like they are actually able fulfill obligations while making money off the government.

The stock market certainly seems to like it.