FirstEnergy to repay borrowings under revolver with new note proceeds

By Angela McDaniels

Tacoma, Wash., June 19 – FirstEnergy Corp. plans to use proceeds from a new issue of notes for general corporate purposes, including the repayment of short-term borrowings under its revolving credit facility.

As of May 31, the total borrowings under the revolver were $2.7 billion. They had a weighted average interest rate of 2.7%, according to a 424B5 filing with the Securities and Exchange Commission.

Proceeds will also be used to repay the company’s $650 million of outstanding 2.75% series A notes due 2018.

The company plans to issue new notes in three series via arrangers Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

FirstEnergy is an electric utility based in Akron, Ohio.

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