FirstEnergy amends three revolvers, gets new $1 billion term loan

By Toni Weeks

San Luis Obispo, Calif., April 4 - FirstEnergy Corp. and some of its subsidiaries entered into extensions and amendments to three existing multi-year syndicated revolving credit facilities on March 31, according to an 8-K filed with the Securities and Exchange Commission.

Under the new agreements, commitments under each of the three facilities will be available until March 31, 2019.

The company amended the credit agreement, dated June 17, 2011, as amended, with FirstEnergy, Cleveland Electric Illuminating Co., Metropolitan Edison Co., Ohio Edison Co., Pennsylvania Power Co., Toledo Edison Co., Jersey Central Power & Light Co., Monongahela Power Co., Pennsylvania Electric Co., Potomac Edison Co. and West Penn Power Co., as borrowers, Royal Bank of Scotland plc, as administrative agent, and the lending banks, fronting banks and swingline lenders (FirstEnergy facility) to increase commitments by $1 billion to $3.5 billion. The agreement also increases the individual borrower sublimit to $3.5 billion, while Monongahela Power's borrower sublimit was increased to $500 million from $150 million.

For the agreement for the FES facility, dated June 17, 2011, as amended, among FirstEnergy Solutions Corp. and Allegheny Energy Supply Co., LLC, as borrowers, and JPMorgan Chase Bank, NA, as administrative agent, and the lending banks, fronting banks and swingline lenders, the company agreed to decrease commitments by $1 billion to $1.5 billion.

• The FET facility credit agreement, dated May 8, 2012, among FirstEnergy Transmission, LLC, American Transmission Systems, Inc. and Trans-Allegheny Interstate Line Co., as borrowers, and PNC Bank, NA, as administrative agent, and the lending banks and fronting banks, American Transmission's individual borrower sublimit was increased to $500 million from $100 million, while Trans-Allegheny's individual borrower sublimit was increased to $400 million from $200 million.

Each of the agreements for the revolving facilities was also amended to align some definitions to those in the agreement for a new term loan. Commitment fees were also amended.

Term loan

FirstEnergy also entered into a new $1 billion five-year term loan credit agreement with Royal Bank of Scotland plc as administrative agent. The loan matures March 31, 2019.

Borrowings bear interest at Libor plus 112.5 basis points to 250 bps, with the exact margin based on the company's debt ratings.

Under the agreement, the company is required to maintain a consolidated debt to total capitalization ratio of no more than 0.65:1.00.

Upon closing, FirstEnergy drew the full amount and used the proceeds to repay advances outstanding under the FirstEnergy Facility.

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.