Allegheny Energy gets tenders for $240 million notes, ups offer size

New York, Aug. 24 - Allegheny Energy Supply Co., LLC said it received tenders for $240 million of notes by the early tender deadline and has increased the maximum size to $260 million from $220 million.

As of Aug. 21, holders had tendered $146.846 million of the company's $650 million 8.25% notes due 2012 and $93.413 million of its 7.8% notes due 2011.

Following the upsizing of the offer, Allegheny Energy is now offering to buy up to $160 million of the 8.25% notes and $100 million of the 7.8% notes. Previously the limits had been the same, but the total amount to be purchased was limited to $220 million.

As announced when the tender started on Aug. 10, for each $1,000 principal amount, the company is offering $1,082.50 for the 8.25% notes and $1,062.50 for the 7.8% notes.

For both series, the payout includes a $30.00 premium for each note tendered by 5 p.m. ET on Aug. 21.

Holders will also receive accrued interest up to but excluding the payment date.

The offer will expire at midnight ET on Sept. 4.

If the principal amount of the notes tendered for a series exceeds the maximum tender amount, the principal amount of notes purchased will be prorated.

The lead dealer manager is J.P. Morgan Securities Inc. (866 834-4666 or 212 834-3424), and the information agent is Global Bondholder Services Corp. (866 470-3900).

Allegheny Energy Supply is the power generation business of Allegheny Energy, Inc., an electric utility based in Greensburg, Pa.

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