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ComEd Credit and Leasing Agreements Extend Relationships With Minority and Community Banks

Posted on: Wednesday, 3 December 2008, 11:14 CST

CHICAGO, Dec. 3 /PRNewswire/ -- ComEd and its parent company, Exelon Corporation, have entered into new credit agreements with minority and community banks in Chicago and other regions Exelon serves.

Seaway National Bank, AMCORE Bank, and the United Bank of Philadelphia arranged the $66 million credit agreements, with JP Morgan Chase serving as the administrative agent. The new credit agreements replace a previous arrangement with minority and community banks that Exelon made in 2007 for $50 million.

"These agreements represent a win for all parties involved," said ComEd Chairman and CEO Frank Clark. "They allow ComEd and Exelon to demonstrate commitment to diversity and inclusion in all of our business relationships, and provide major transactions that minority and community banks can participate in."

In a challenging economic climate, these agreements provide Exelon and ComEd with an additional source of credit while offering minority and community banks an opportunity to grow their relationships with Fortune 500 companies.

"We are pleased to facilitate a relationship between minority and community banks and a large money center bank in order to accomplish an important business objective," said Robert K. McDonald, senior vice president and chief financial officer at ComEd. "This working partnership is unique and we're proud to have played a role."

"We welcome this opportunity to partner with ComEd and its parent company, Exelon Corporation," said Walter E. Grady, President and CEO of Seaway Bank. "This alliance enables us to further expand economic development programs within the communities we serve, and allows us to share our success with other minority and women-owned banks nationwide."

ComEd also has entered into an agreement with a minority leasing firm to provide vehicles for ComEd field crews to use. Illinois Service Federal Savings and Loan Association is playing a role in this $1.8 million leasing agreement between ComEd and Minority Alliance Capital that has provided a total of 80 trucks for ComEd crew use. Minority Alliance Capital is a national, full-service equipment leasing company owned by three African-American banks.

The credit and leasing agreements are part of ComEd's continued effort to engage minority-owned firms. ComEd was the first in the utility industry to have a taxable bond offering managed exclusively by minority-owned investment banks.

"Supplier diversity is an important part of our diversity and inclusion strategy," said Clark. "Diversity and inclusion is about increasing opportunities and ensuring broad access to them, not just in terms of how we hire, but as a fundamental way of doing business every day."

In 2007, ComEd spent $176.5 million with minority and women-owned businesses, representing 17.5 percent of ComEd's total spend. Combined with Exelon, in 2007 the total spend with minority and women-owned enterprises was $475 million.

Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC), one of the nation's largest electric utilities with approximately 5.4 million customers. ComEd provides service to approximately 3.8 million customers across Northern Illinois, or 70 percent of the state's population.

SOURCE ComEd

Source: PR Newswire

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