ED CONSOLIDATED EDISON INC

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Executive Summary

CECONY, a subsidiary of Consolidated Edison, Inc. (ED), issued $1.3 billion in aggregate principal amount of debentures across two tranches: $450 million of 5.15% Series 2026 A due 2036 and $850 million of 5.875% Series 2026 B due 2056. The proceeds will be used for general corporate purposes as specified in the prospectus. This is a routine debt capital markets transaction for a regulated utility and does not change the fundamental credit profile of the parent.

Actionable Insight

Key Facts

• CECONY issued $450M of 5.15% Debentures, Series 2026 A due June 15, 2036
• CECONY issued $850M of 5.875% Debentures, Series 2026 B due June 15, 2056
• Total aggregate principal amount of the offering is $1.3 billion
• The debentures are unsecured and rank equally with other unsecured debt of CECONY
• Both tranches are redeemable at CECONY's option (make-whole call prior to par call date, then par call)
• Settlement date is June 3, 2026 (T+2)
• Joint book-running managers include J.P. Morgan, Mizuho, PNC Capital Markets, and Wells Fargo
• The offering was registered under an existing automatic shelf registration statement (Form S-3, No. 333-281192)

Financial Impact

$1.3 billion in new debt issued by CECONY, increasing its long-term debt by this amount. Net proceeds to CECONY will be slightly less than $1.3 billion due to underwriting discounts (purchase price of 98.999% for Series A and 98.842% for Series B).

Risk Factors

• Increased leverage at CECONY could pressure credit ratings if debt issuance continues at an accelerated pace
• Higher interest expense from the 5.875% 30-year tranche may modestly reduce net income available to ED common shareholders
• Rising interest rate environment could make future refinancing more expensive

Market Snapshot

Documents Analyzed

This report is based on 8 SEC documents filed with EDGAR.

US Market Status