FirstEnergy begins consent solicitations for 15 revenue bond series

By Angela McDaniels

Tacoma, Wash., Jan. 17 - FirstEnergy Corp. subsidiaries FirstEnergy Generation Corp. and FirstEnergy Nuclear Generation Corp. began consent solicitations for 15 series of tax-exempt revenue bonds, according to a company news release.

The bonds covered by the solicitations include:

• $72.65 million of series 2005-A pollution control revenue refunding bonds issued by the Beaver County Industrial Development Authority for the FirstEnergy Nuclear Generation project;

• $177 million of series 2009-A State of Ohio air quality development revenue bonds issued by the Ohio Air Quality Development Authority for the FirstEnergy Generation project; and

• $6.45 million of State of Ohio pollution control revenue refunding bonds series 2009-A issued by the Ohio Water Development Authority for the FirstEnergy Generation project.

Also included are the following State of Ohio pollution control revenue refunding bonds issued by the Ohio Air Quality Development Authority for the FirstEnergy Nuclear Generation project:

• $7.2 million of series 2005-B bonds;

• $23 million of series 2008-C bonds;

• $62.5 million of series 2009-A bonds; and

• $8 million of series 2010-A bonds.

The solicitations include the following State of Ohio pollution control revenue refunding bonds issued by the Ohio Air Quality Development Authority for the FirstEnergy Generation project:

• $234.52 million of series 2006-A bonds;

• $50 million of series 2009-A bonds;

• $141.26 million of series 2009-C bonds; and

• $100 million of series 2009-D bonds.

Finally, the solicitations also include the following State of Ohio pollution control revenue refunding bonds issued by the Ohio Water Development Authority for the FirstEnergy Nuclear Generation project:

• $82.8 million of series 2005-B bonds;

• $33 million of series 2008-C bonds;

• $107.5 million of series 2009-A bonds; and

• $99.1 million of series 2010-A bonds.

The subsidiaries are soliciting consents to proposed amendments that would change the covenants that require the subsidiaries to maintain their "corporate existence" to covenants to maintain their "existence."

FirstEnergy said the companies are seeking the proposed amendments in order to pursue a conversion from Ohio corporations to Ohio limited liability companies. They expect this conversion to better align their tax status with their direct parent, FirstEnergy Solutions Corp., with the manner in which their competitive business is viewed for operational and financial reporting purposes.

The subsidiaries are offering a consent payment of $1.25 per $1,000 principal amount of bonds to holders of record as of Jan. 13 who deliver consents.

The consent solicitations will expire at 5 p.m. ET on Feb. 7.

The solicitation agent is Morgan Stanley & Co. LLC (212 762-8290). The information and tabulation agent is Bondholder Communications Group, LLC (888 385-2663, 212 809-2663, fedwards@bondcom.com or www.bondcom.com/firstenergy).

FirstEnergy is an energy company based in Akron, Ohio.

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