Filed Pursuant to Rule 433
Registration No. 333-169477-01
March 29, 2011
ATLANTIC CITY ELECTRIC COMPANY
$200,000,000
First Mortgage Bonds, 4.35% Series due April 1, 2021
PRICING TERM SHEET
Issuer: | Atlantic City Electric Company | |
Issue: | First Mortgage Bonds, 4.35% Series due April 1, 2021 | |
Ratings:* | A3/A/A- (Moody’s/S&P/Fitch) | |
Offering Size: | $200,000,000 | |
Coupon: | 4.35% | |
Trade Date: | March 29, 2011 | |
Settlement Date: | April 5, 2011 (T+5) | |
Stated Maturity: | April 1, 2021 | |
Initial Public Offering Price: | 99.848% per Bond | |
Proceeds to Issuer (before expenses): | $198,396,000 | |
Yield to Maturity: | 4.369% | |
Benchmark Treasury: | 3.625% due February 15, 2021 | |
Benchmark Treasury Yield: | 3.469% | |
Spread to Benchmark Treasury: | +90 bps | |
Optional Redemption: | Make-whole call at any time prior to January 1, 2021 at 15 bps spread over Benchmark Treasury.
Callable on or after January 1, 2021 at par. | |
Interest Payment Dates: | April 1 and October 1 of each year, commencing October 1, 2011 | |
CUSIP Number/ISIN: | 048303CE9/US048303CE96 | |
Joint Book-Running Managers: | Citigroup Global Markets Inc. Scotia Capital (USA) Inc. Wells Fargo Securities, LLC | |
Co-Manager: | The Williams Capital Group, L.P. |
* A security rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating organization. Each security rating agency has its own methodology for assigning ratings, and, accordingly, each rating should be considered independently of all other ratings.
The issuer has filed a registration statement (including a prospectus and a preliminary prospectus supplement) with the Securities and Exchange Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at 1-877-858-5407, Scotia Capital (USA) Inc. toll-free at 1-800-372-3930 or Wells Fargo Securities, LLC toll-free at 1-800-326-5897.