FirstEnergy, units enter six revolvers for up to $4.5 billion

By Wendy Van Sickle

Columbus, Ohio, Oct. 18 – FirstEnergy Corp. and some of its subsidiaries replaced their credit agreement dated Dec. 6, 2016 on Monday with six separate five-year revolvers providing for up to a total of $4.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

The revolvers include

• A $1 billion revolver with FirstEnergy and FirstEnergy Transmission, LLC as borrowers and JPMorgan Chase Bank, NA as administrative agent and a $100 million sub-facility for letters of credit;

• An $800 million revolver with Cleveland Electric Illuminating Co., Ohio Edison Co. and the Toledo Edison Co. as borrowers and JPMorgan as administrative agent and a $150 million sub-facility for letters of credit;

• A $950 million revolver with Metropolitan Edison Co., Pennsylvania Electric Co., Pennsylvania Power Co. and West Penn Power Co. as borrowers and Mizuho Bank, Ltd. as administrative agent and a $200 million sub-facility for letters of credit;

• A $500 million revolver with Jersey Central Power & Light Co. as borrower and Mizuho as administrative agent and a $100 million sub-facility for letters of credit;

• A $400 million revolver with Monongahela Power Co. and Potomac Edison Co. as borrowers and Mizuho as administrative agent and a $100 million sub-facility for letters of credit; and

• An $850 million revolver with American Transmission Systems, Inc., Mid-Atlantic Interstate Transmission, LLC and Trans-Allegheny Interstate Line Co. as borrowers and PNC Bank, NA as administrative agent and a $200 million sub-facility for letters of credit.

The credit facilities are available to be borrowed and reborrowed until Oct. 18, 2026. Generally, borrowings will mature on the earlier of 364 days from the date of borrowing or the commitment termination date.

Borrowings bear interest at Libor plus a margin that is based on ratings and ranges from 150 basis points to 300 bps for the $1 billion facility and 112.5 bps to 250 bps for the other credit facilities.

Each borrower under the credit facilities other than FirstEnergy must maintain a consolidated debt to total capitalization ratio of not more than 0.65 to 1.0 or 0.75 to 1.0 for FirstEnergy Transmission. FirstEnergy must maintain a minimum interest coverage ratio of 2.5 to 1.0.

The diversified energy holding company is based in Akron, Ohio.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.