Summary
FirstEnergy Corp. (FE) has filed an 8-K report on April 3, 2006, detailing the issuance of four series of pollution control revenue refunding bonds totaling $253.24 million. These bonds were issued by the Ohio Water Development Authority and the Beaver County Industrial Development Authority on behalf of FirstEnergy's subsidiaries, FirstEnergy Generation Corp. (FGCO) and FirstEnergy Nuclear Generation Corp. (NGC). The primary purpose of these bond issuances is to refinance existing debt used for the construction and installation of air and water pollution control facilities, as well as sewage and solid waste disposal facilities at plants now owned by FirstEnergy's subsidiaries. The bonds are secured by letters of credit from Barclays Bank PLC, and FirstEnergy Corp. itself has provided guaranties for its subsidiaries' obligations under these agreements.
Key Highlights
- 1FirstEnergy Corp. issued $253.24 million in pollution control revenue refunding bonds through its subsidiaries.
- 2The bonds are being used to refinance costs associated with pollution control and waste disposal facilities.
- 3Four series of bonds were issued by the Ohio Water Development Authority and the Beaver County Industrial Development Authority.
- 4Barclays Bank PLC is providing irrevocable letters of credit to secure the principal and interest payments on the bonds.
- 5FirstEnergy Corp. has issued guaranties for the obligations of its subsidiaries related to these bonds.
- 6The interest rates on the bonds can be determined by various methods, including daily, weekly, commercial paper, and long-term rates.
- 7The proceeds will refinance debt related to construction and installation of environmental facilities.