Attached files
| file | filename |
|---|---|
| EX-5.1 - EXHIBIT 5.1 - POTOMAC ELECTRIC POWER CO | ex5-1.htm |
| EX-1.1 - EXHIBIT 1.1 - POTOMAC ELECTRIC POWER CO | ex1-1.htm |
| EX-4.2 - EXHIBIT 4.2 - POTOMAC ELECTRIC POWER CO | ex4-2.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 11, 2014
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POTOMAC ELECTRIC POWER COMPANY
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(Exact name of registrant as specified in its charter)
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District of Columbia and Virginia
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001-01072
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53-0127880
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(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
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701 Ninth Street, N.W., Washington, DC
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20068
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code (202) 872-2000
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Not Applicable
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(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01 Entry into a Material Definitive Agreement.
Potomac Electric Power Company (the Company) has entered into a Purchase Agreement, dated March 11, 2014 (the Purchase Agreement), with J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities, LLC, as representatives (collectively, the Representatives) of the several underwriters named therein (collectively, the Underwriters), for the offer and sale of $400,000,000 in aggregate principal amount of the Company’s First Mortgage Bonds, 3.60% Series due March 15, 2024 (the Bonds) in an underwritten offering registered on a Registration Statement on Form S-3 (Registration No. 333-190917-03), which was filed with the Securities and Exchange Commission on August 30, 2013 (the Offering). The Purchase Agreement is filed herewith as Exhibit 1.1 and the form of Bond is filed herewith as Exhibit 4.1. The Bonds are initially being offered to the public at a price of 99.867% of the principal amount. At the closing of the Offering, which is scheduled to occur on March 18, 2014, the Company will realize, after deduction of the underwriting discount of 0.65% of the principal amount and before deduction of Offering expenses, net proceeds of approximately $396,868,000.
The Bonds will be issued under the Mortgage and Deed of Trust, dated July 1, 1936, between the Company and The Bank of New York Mellon, as successor trustee (the Mortgage Trustee), as amended and supplemented from time to time, including pursuant to the Supplemental Indenture, dated as of March 11, 2014 (the Supplemental Indenture), relating to the issuance of the Bonds (the Mortgage). Subject to the exceptions and limitations contained in the Mortgage, the Bonds will be secured, together with all bonds now or hereafter issued, under the Mortgage, by a first lien (subject to certain leases, permitted liens and other minor matters) on substantially all of the Company’s real and personal property and franchises. A copy of the Supplemental Indenture is filed herewith as Exhibit 4.2.
The Company may redeem all or any portion of the Bonds, at its option, at any time prior to their maturity, at the redemption price described below. The Company will give notice of its intent to redeem the Bonds at least 30 days, but no more than 60 days, prior to the redemption date. If the Company redeems all or any part of the Bonds as described above prior to December 15, 2023, the Company will pay a redemption price equal to the greater of (i) 100% of the principal amount of the Bonds being redeemed; and (ii) a make-whole amount as set forth in the Supplemental Indenture, plus, in each case, accrued and unpaid interest on such Bonds to the redemption date. If the Company redeems all or any part of the Bonds pursuant to the provisions thereof on or after December 15, 2023, the Company will pay a redemption price equal to 100% of the principal amount of the Bonds being redeemed plus accrued and unpaid interest thereon.
The Company intends to use a portion of the net proceeds of the Offering to repay in full at maturity $175.0 million in aggregate principal amount of its 4.65% Senior Notes due April 15, 2014, plus accrued and unpaid interest thereon. The Senior Notes are secured by a like principal amount of the Company’s First Mortgage Bonds, 4.65% Collateral Series due April 15, 2014, which under the Mortgage will be deemed to be satisfied when the Senior Notes are repaid. The Company intends to use the remaining net proceeds of the Offering to repay outstanding commercial paper and for general corporate purposes.
The legality opinion of Kevin C. Fitzgerald, Esq., Executive Vice President and General Counsel of the Company, relating to the issuance of the Bonds, is filed herewith as Exhibit 5.1.
In the ordinary course of business, the Underwriters and their respective affiliates have from time to time performed and may in the future perform various financial advisory, commercial banking, investment banking services and asset leasing for the Company and its affiliates, for which they received, or will continue to receive, customary fees or compensation. In addition, affiliates of the Representatives are dealers under the Company’s commercial paper program and affiliates of certain of the Underwriters are lenders under the Company’s primary credit facility.
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The Underwriters and their respective affiliates may also, in the ordinary course of their various business activities, make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and instruments of the Company or its affiliates. Certain of the Underwriters and their affiliates that have a lending relationship with the Company routinely hedge, and certain other of those Underwriters or their affiliates may hedge, their credit exposure to the Company consistent with their customary risk management policies. The Underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or financial instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are filed herewith:
Exhibit
No.
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Description
of Exhibit
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1.1
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Purchase Agreement, dated March 11, 2014, among the Company and J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities, LLC, as representatives of the several Underwriters named therein
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4.1
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Form of First Mortgage Bond, 3.60% Series due March 15, 2024 (included in Exhibit 4.2)
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4.2
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Supplemental Indenture, dated as of March 11, 2014, with respect to the Mortgage and Deed of Trust, dated July 1, 1936
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5.1
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Opinion of Kevin C. Fitzgerald, Esq.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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POTOMAC ELECTRIC POWER COMPANY
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Date: March 12, 2014
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/s/ Frederick J. Boyle |
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Name: Frederick J. Boyle
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Title: Senior Vice President and Chief Financial Officer |
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EXHIBIT INDEX
Exhibit
No.
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Description
of Exhibit
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1.1
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Purchase Agreement, dated March 11, 2014, among the Company and J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities, LLC, as representatives of the several Underwriters named therein
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4.1
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Form of First Mortgage Bond, 3.60% Series due March 15, 2024 (included in Exhibit 4.2)
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4.2
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Supplemental Indenture, dated as of March 11, 2014, with respect to the Mortgage and Deed of Trust, dated July 1, 1936
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5.1
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Opinion of Kevin C. Fitzgerald, Esq.
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