Baltimore Gas and Electric Taps Debt Markets for $925 Million in Two-Part Note Sale
The Maryland utility will use most of the proceeds to refinance maturing 2.400% senior notes scheduled to come due in August.
May 26, 2026
Baltimore Gas and Electric Company has raised $925 million through a two-part senior note offering, tapping the debt markets to refinance a maturing obligation and fund general corporate needs, the Maryland utility disclosed this week.
Deal Structure
The Baltimore-based subsidiary of Exelon closed the transaction on May 22, 2026, across two tranches:
- $500 million of 5.150% senior notes maturing June 1, 2033
- $425 million of 6.050% senior notes maturing June 1, 2056
The 30-year maturity on the second tranche locks in long-dated funding for the regulated utility. Interest on both series will be paid semiannually on June 1 and December 1, with the first payment due December 1, 2026. Each tranche carries optional redemption provisions detailed in the related note documents.
The new notes were issued under an indenture dated September 2019 between BGE and U.S. Bank Trust Company, National Association, which serves as trustee, and were registered with federal securities regulators under a previously cleared shelf registration on Form S-3.
Use of Proceeds
BGE plans to direct the bulk of the proceeds toward retiring $350 million in outstanding 2.400% senior notes scheduled to come due August 15, 2026. The remainder will be used for general corporate purposes.
The refinancing effectively replaces a low-coupon obligation — originally priced when interest rates were near historic lows — with new debt issued at materially higher coupons, a pattern familiar to investment-grade issuers navigating the higher-for-longer rate environment.
Underwriters and Counsel
The offering was underwritten by a syndicate with Barclays Capital, Credit Agricole Securities (USA), Goldman Sachs, SMBC Nikko Securities America, and U.S. Bancorp Investments serving as representatives. The underwriting agreement was executed May 19, 2026. BGE noted that members of the syndicate and their affiliates have previously provided banking services to the company, with some also serving as lenders under its revolving credit facility. Ballard Spahr LLP issued the legal opinion connected with the issuance.
Risk Factors
The company flagged a familiar list of risks that could weigh on its forward-looking outlook, including unfavorable regulatory or legislative developments, environmental liabilities, cybersecurity threats, extreme weather events, supply chain disruptions, emerging energy technologies, capital market instability, and potential credit-rating downgrades. Investors were cautioned not to place undue reliance on forward-looking statements.
