FirstEnergy Transmission, LLC Announces Launch of Exchange Offer for Its 4.550% Senior Notes Due 2030 and 5.000% Senior Notes Due 2035

Rhea-AI Summary

FirstEnergy Transmission (FET) has announced an exchange offer for its outstanding senior notes. The company is offering to exchange up to $400 million of 4.550% Senior Notes due 2030 and up to $400 million of 5.000% Senior Notes due 2035 for equal amounts of new notes registered under the Securities Act.

The exchange offer will expire on January 24, 2025, at 5:00 p.m. New York City time. This exchange is being conducted to fulfill obligations under a registration rights agreement and does not represent a new financing transaction. FET operates electric transmission companies across Ohio, Pennsylvania, West Virginia, Maryland and Virginia.

Insights

Fixed Income Analyst

This exchange offer represents a routine refinancing mechanism where FirstEnergy Transmission is exchanging unregistered notes for SEC-registered notes with identical terms. The key aspects are: $400 million of 4.550% notes due 2030 and $400 million of 5.000% notes due 2035. This is purely a regulatory compliance exercise to fulfill registration rights agreements, not a new capital raise.

The exchange doesn't alter FET's debt profile, cash flows, or credit metrics. The identical interest rates and principal amounts mean there's no impact on the company's financial position or debt service obligations. For investors, the main benefit is enhanced liquidity since registered notes typically trade more freely in secondary markets compared to unregistered ones.

For a utility company with $22.7 billion market cap, this administrative action maintains financial transparency and SEC compliance without affecting underlying business fundamentals or investor risk exposure.

FAIRMONT, W.Va., Dec. 23, 2024 /PRNewswire/ -- FirstEnergy Transmission, LLC ("FET" or the "Company"), a subsidiary of FirstEnergy Corp. and a holding company of electric transmission companies operating in Ohio, Pennsylvania, West Virginia, Maryland and Virginia, today announced an offer to exchange (i) up to $400 million aggregate principal amount of its outstanding 4.550% Senior Notes due 2030 (the "Outstanding 2030 Notes") for an equal amount of 4.550% Senior Notes due 2030 registered under the Securities Act of 1933, as amended (the "Securities Act") (the "New 2030 Notes")  and (ii) up to $400 million aggregate principal amount of its outstanding 5.000% Senior Notes due 2035 (the "Outstanding 2035 Notes" and together with the Outstanding 2030 Notes, the "Outstanding Notes") for an equal amount of 5.000% Senior Notes due 2035 registered under the Securities Act (the "New 2035 Notes" and together with the New 2030 Notes, the "New Notes").

The exchange offer will expire at 5:00 p.m., New York City time, on Jan. 24, 2025, unless extended. Tenders of Outstanding Notes must be made before the exchange offer expires and may be withdrawn any time prior to the expiration of the exchange offer. The exchange offer is being made to satisfy the Company's obligations under a registration rights agreement entered into in connection with the issuance of the Outstanding Notes and does not represent a new financing transaction.

The terms of the exchange offer are set forth in a prospectus dated Dec. 23, 2024. Copies of the prospectus and the other exchange offer documents may be obtained from the exchange agent:

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION
By Mail or in Person
U.S. Bank Trust Company, National Association
Attn: Corporate Actions
111 Fillmore Avenue
St. Paul, MN 55107-1402
For Email or Facsimile Transmission (for Eligible Institutions Only)
Email: cts.specfinance@usbank.com
Facsimile: (651) 466-7367
For Information and to Confirm by Telephone
(800) 934-6802

This press release is for informational purposes only and is neither an offer to buy or sell nor a solicitation of an offer to buy or sell any Outstanding Notes or New Notes. The exchange offer is being made only pursuant to the exchange offer prospectus, which is being distributed to holders of the Outstanding Notes and has been filed with the Securities and Exchange Commission as part of the Company's Registration Statement on Form S-4 (File No. 333-282554), which was declared effective on Dec. 20, 2024.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on X @FirstEnergyCorp.

Discussion of Forward-Looking Statements About FET

Statements in this document regarding FET that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, FET undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see FET's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Cautionary Note Regarding Forward-Looking Statements set forth in these filings and any updates to such risk factors and Cautionary Note Regarding Forward-Looking Statements contained in any subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE FirstEnergy Corp.

FAQ

When does FirstEnergy's (FE) 2024 senior notes exchange offer expire?

FirstEnergy Transmission's exchange offer expires at 5:00 p.m., New York City time, on January 24, 2025, unless extended.

What is the total value of notes being exchanged in FirstEnergy's (FE) 2024 exchange offer?

The total exchange offer amounts to $800 million, comprising $400 million in 4.550% Senior Notes due 2030 and $400 million in 5.000% Senior Notes due 2035.

What are the interest rates for FirstEnergy's (FE) exchanged notes in 2024?

The exchange offers two sets of notes: 4.550% Senior Notes due 2030 and 5.000% Senior Notes due 2035.

Is FirstEnergy's (FE) 2024 exchange offer a new financing transaction?

No, the exchange offer is not a new financing transaction but is being made to satisfy the company's obligations under a registration rights agreement.

In which states does FirstEnergy Transmission (FE) operate?

FirstEnergy Transmission operates electric transmission companies in Ohio, Pennsylvania, West Virginia, Maryland, and Virginia.