Constellation Energy Group Inc. (CEG) announced the commencement of a cash tender offer for up to $400 million in notes. The tender offer includes the company’s outstanding 7.00% Notes due April 1, 2012, and its outstanding 4.55% Notes due June 15, 2015. The tender offer will expire on Feb 3, 2010, unless extended.

The tender offer is a part of Constellation Energy’s previously announced commitment to repay $1 billion of debt. Constellation Energy expects to fulfill this commitment by the end of the first quarter of 2010.

The terms and conditions of the tender offer were described in an Offer to Purchase dated Jan 6, 2010, and related Letter of Transmittal. Under the tender offer, the company will pay a consideration of $1,080 per $1,000 principal amount of notes for its 7.00% notes and $1,002.50 per $1,000 principal amount of its 4.55% notes. The total consideration includes an early tender payment of $30 per $1,000 principal amount of notes. This offer is valid for note holders who tender their notes on or before Jan 20, 2009.

Based in Baltimore, Maryland, Constellation Energy supplies energy products and services to wholesale customers as well as retail, commercial, industrial and governmental customers in North America. Constellation has a merchant energy business and the Baltimore Gas and Electric Company, a regulated electric and gas public utility, operating in central Maryland. Its merchant energy business is a provider of energy solutions.

Constellation Energy also has other non-regulated businesses that design, construct and operate heating, cooling and cogeneration facilities for commercial, industrial and governmental customers throughout North America. Moreover, it provides home improvements, service heating, air conditioning, plumbing, electrical and indoor air-quality systems, besides providing natural gas to residential customers in central Maryland.

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