FirstEnergy to Offer $950 Million in Convertible Senior Notes due …
FirstEnergy Corp has recently made an announcement regarding the proposed offering of $950 million of Convertible Senior Notes due 2029 and $850 million of Convertible Senior Notes due 2031. This offering is subject to various market conditions, and the company intends to grant initial buyers an option to purchase additional Notes within a specified period following the issuance of the convertible notes.
The net proceeds from the offering of the Notes will be utilized for several purposes, including the repurchase of outstanding 4.00% convertible senior notes due May 1, 2026. Additionally, these funds may be allocated towards the repayment, redemption, or refinancing of existing debts, general corporate purposes, or a combination of these objectives. FirstEnergy’s management will have discretionary power in determining the utilization of the net proceeds from the offering.
The Notes will be unsecured and unsubordinated obligations of FirstEnergy and will be convertible at the option of the holders of each series of Notes under specific conditions and during defined periods. Interest on the Notes will be payable semiannually, and conversions will be settled by paying cash and shares of common stock as necessary. Details such as interest rates, initial conversion rates, and other terms will be established at the pricing of the offering.
The offering of the Notes is specifically targeted towards qualified institutional buyers, compliant with Rule 144A under the Securities Act. It is important to note that neither the Notes nor any shares of common stock issued upon conversion have been or are expected to be registered under the Securities Act or state securities laws, thereby limiting their sale or offers in the United States.
FirstEnergy emphasizes that this news release does not serve as an offer to sell or a solicitation to buy the Notes or any common stock shares issued upon conversion. Any sale or offer of these securities would be illegal without prior registration or qualification under the relevant securities laws of specific states or jurisdictions.
About FirstEnergy Corp, the company prides itself on its commitment to integrity, safety, reliability, and operational excellence. Their electric distribution network caters to over 6 million customers across several states in the US, with transmission lines connecting regions in the Midwest and Mid-Atlantic. For more information on FirstEnergy, visit their website or follow them on social media.
The forward-looking statements made in this news release are insights gleaned from available information and are based on management’s expectations. These statements are fraught with potential risks and uncertainties, and readers are advised to exercise caution when considering them. FirstEnergy’s forward-looking statements involve a range of risks, uncertainties, and factors that may be beyond their control, and actual results may vary significantly from the expressed intentions. The company refrains from guaranteeing future performance based on these forward-looking statements, which are subject to change due to various unknown and uncontrollable elements.