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Consolidated Edison announces redemption of tax-exempt debt

EditorLina Guerrero
Published 10/25/2024, 04:17 PM
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Consolidated Edison Inc. (NYSE:ED), a leading energy company based in New York, has announced the redemption of four subseries of its tax-exempt debt. The announcement was made today and involves the Series 2010A-1, Series 2010A-2, Series 2010A-3, and Series 2010A-4 debt, with an aggregate principal amount of $224.6 million.

The redemption is scheduled for November 25, 2024, and is in accordance with the terms provided in the Notice of Conditional Redemption. The notice is included as an exhibit to the company's recent 8-K filing with the United States Securities and Exchange Commission (SEC).

The debt being called for redemption was originally issued by Consolidated Edison Company of New York, Inc., a subsidiary of Consolidated Edison, Inc. This financial move is a part of the company's debt management strategy and reflects its ongoing efforts to manage its capital structure effectively.

Investors and stakeholders can refer to the SEC filing for detailed information, including the specific terms and conditions of the redemption. The company has affirmed that the redemption will proceed as outlined in the notice, and further details can be found within the exhibits of the SEC filing.

This announcement is significant for the holders of these specific debt instruments as it outlines the timeline and process for the redemption. It also indicates Consolidated Edison's active management of its financial obligations.

Consolidated Edison Inc. and its subsidiary, Consolidated Edison Company of New York, Inc., have provided the necessary authorizations for the report, as confirmed by the signature of Joseph Miller, Vice President, Controller, and Chief Accounting Officer of the companies.

The information for this news article is based on the latest SEC filing by Consolidated Edison and reflects the company's current financial activities related to its tax-exempt debt instruments.

In other recent news, Consolidated Edison reported an adjusted earnings per share (EPS) of $0.59 for the second quarter of 2024, slightly under the BofA Securities estimate but above the consensus. The company's operating revenue increased to $3.22 billion, primarily driven by higher demand for cooling during a heat wave. However, operations and maintenance expenses also rose, showing a 13.9% increase from the same period last year. Despite these changes, Consolidated Edison has maintained its full-year 2024 EPS guidance, projecting earnings between $5.20 and $5.40. In terms of analyst ratings, the utility company saw its stock rating upgraded from Neutral to Buy by a Citi analyst, while Jefferies initiated coverage with a Hold rating.

Meanwhile, BofA Securities raised its price target for Consolidated Edison from $97.00 to $109.00, maintaining a Buy rating. In other company news, the New York State Department of Public Service supported rate cases for Consolidated Edison's subsidiary Orange & Rockland (O&R), and Kirkland B. Andrews was appointed as the new CFO of Consolidated Edison.

InvestingPro Insights

Consolidated Edison's decision to redeem $224.6 million in tax-exempt debt aligns with its robust financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a substantial market capitalization of $36.2 billion and maintains a healthy P/E ratio of 20.3, indicating investor confidence in its earnings potential.

InvestingPro Tips highlight Consolidated Edison's impressive track record of dividend payments. The company has raised its dividend for 50 consecutive years and has maintained dividend payments for 54 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 3.1%, underscores the company's financial stability and commitment to returning value to shareholders.

The company's strong financial management is further reflected in its recent stock performance. InvestingPro data shows that Consolidated Edison is trading near its 52-week high, with a one-year price total return of 25.51%. This positive momentum suggests that investors are responding favorably to the company's strategic financial decisions, including the debt redemption announced in this article.

For investors seeking more comprehensive insights, InvestingPro offers 8 additional tips for Consolidated Edison, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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