By Andrea Heisinger
New York, Aug. 4 - FirstEnergy Solutions Corp. priced $1.5 billion of notes (Baa2/BBB/) in three tranches late Tuesday, a market source said.
The $400 million of 4.8% notes due Feb. 15, 2015 priced at 99.956 to yield 4.809%, or Treasuries plus 212.5 basis points. The notes have a make-whole call at Treasuries plus 35 bps.
The $600 million of 6.05% 12-year notes priced at 99.998 to yield 6.05%, or Treasuries plus 237.5 bps. They have a make-whole call at Treasuries plus 40 bps.
The $500 million of 6.8% 30-year notes priced at 99.655 to yield 6.827%, or Treasuries plus 237.5 bps. They are redeemable at a make-whole call of Treasuries plus 40 bps.
All three tranches of notes were sold via Rule 144A.
Bookrunners were Barclays Capital Inc., Credit Suisse Securities, Morgan Stanley & Co. Inc. and RBS Securities Inc.
The electric and natural gas subsidiary of FirstEnergy Corp. is based in Akron, Ohio.
| Issuer: | FirstEnergy Solutions Corp.
|
| Issue: | Notes
|
| Total amount: | $1.5 billion
|
| Bookrunners: | Barclays Capital Inc., Credit Suisse Securities, Morgan Stanley & Co. Inc., RBS Securities Inc.
|
| Distribution: | Rule 144A
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Notes due 2015
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2015
|
| Coupon: | 4.8%
|
| Price: | 99.956
|
| Yield: | 4.809%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 12-year notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 15, 2021
|
| Coupon: | 6.05%
|
| Price: | 99.998
|
| Yield: | 6.05%
|
| Spread: | Treasuries plus 237.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2039
|
| Coupon: | 6.8%
|
| Price: | 99.655
|
| Yield: | 6.827%
|
| Spread: | Treasuries plus 237.5 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
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