Philadelphia Electric Co. last week used a modified dutch auction to refinance $160 million of high-coupon bonds that could not have been called until 1995 -- the longest window yet in which a municipal issuer has used the strategy.

To participate in the auction, holders of the utility's outstanding bonds -- which cannot be advance refunded because of tax law restrictions -- submitted bids reflecting a price at which they would be willing to sell their securities back to the company.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.