8-KFinancial Events

FIRSTENERGY CORP 8-K Report, Financial Obligation (Nov 24, 2020)

Filed November 24, 2020For Securities:FE

Summary

This 8-K filing from FirstEnergy Corp. (FE) on November 24, 2020, details significant borrowing activity under its revolving credit facilities. The company and its subsidiaries proactively drew down $950 million under the FE Revolving Facility and $1 billion under the FET Revolving Facility. These actions were taken to increase cash positions and preserve financial flexibility. The FE Revolving Facility has $1.3 billion remaining availability, while the FET Revolving Facility is fully drawn with no remaining availability. Both facilities are scheduled to mature on December 6, 2022.

Key Highlights

  • 1FirstEnergy Corp. and its subsidiaries borrowed $1.95 billion in aggregate on November 23, 2020.
  • 2A total of $950 million was borrowed under the FE Revolving Facility, leaving $1.3 billion in availability.
  • 3A total of $1 billion was borrowed under the FET Revolving Facility, exhausting its availability.
  • 4These borrowings were described as a proactive measure to enhance cash positions and financial flexibility.
  • 5The FE Revolving Facility has an aggregate availability of $2.5 billion.
  • 6The FET Revolving Facility has an aggregate availability of $1.0 billion.
  • 7Both revolving credit facilities have a maturity date of December 6, 2022.

Frequently Asked Questions

The company stated that the increased borrowings were a proactive measure to bolster their cash positions and ensure continued financial flexibility during the reporting period.

The FE Revolving Facility has an aggregate availability of $2.5 billion, and the FET Revolving Facility has an aggregate availability of $1.0 billion, for a combined total of $3.5 billion.

Both the FE Revolving Facility and the FET Revolving Facility are scheduled to mature on December 6, 2022.

After the borrowings on November 23, 2020, the outstanding principal balance under the FE Revolving Facility is $1.2 billion, with $1.3 billion of remaining availability. The FET Revolving Facility has an outstanding principal balance of $1 billion with no remaining availability.