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BALTIMORE, Sept 17, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Constellation Energy (NYSE: CEG) today announced that the sponsoring banks have confirmed that the firm, underwritten commitment for an additional $2 billion credit facility announced on Aug. 27, 2008, remains in effect. The terms of the commitment include a material adverse change condition, defined as "a material adverse change in the business, financial condition or financial results of operations of the company and its material subsidiaries, taken as a whole on a consolidated basis."
Constellation Energy also confirmed that it has retained Morgan Stanley and UBS to act in an advisory capacity to evaluate strategic alternatives. The company and its advisors are in active discussions with potential strategic partners.
Constellation Energy also reinforced that its credit exposure to financial institutions is limited. The following table provides an estimate of the company's wholesale credit risk sector concentrations:
Total Wholesale Credit
Risk Exposure (net of
Counterparty collateral)
Coal 38%
Utilities / Municipalities /
Cooperatives 24%
Power 23%
Freight 6%
Gas 6%
Financial Institutions 2%
Other 1%
Total Credits Exposure (net of
collateral) 100%
Note: As of September 15, 2008
As of Sept. 15, 2008, Constellation Energy had net credit exposure to 14 financial institutions. The company's estimated aggregate credit exposure, net of collateral, to these financial institutions was approximately $120 million, with no single financial institution representing more than $28 million of net credit risk exposure.
Constellation Energy reaffirmed its third quarter 2008 outlook of $0.83 to $0.99 per share and full-year 2008 earnings guidance of $5.25 to $5.75 per share.
Forward-Looking Statements
We make statements in this news release that are considered forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Constellation Energy (http://www.constellation.com), a FORTUNE 125 company with 2007 revenues of $21 billion, is the nation's largest competitive supplier of electricity to large commercial and industrial customers and the nation's largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of 83 generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.
SOURCE Constellation Energy
http://www.constellation.com
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