FIRSTENERGY CORP (FE): debt financing — FirstEnergy issues $1.5B of 4.00% convertible senior notes due 2026

FIRSTENERGY CORP

Principal amount $1.5B (including $200M from full exercise of initial purchasers' option); net proceeds ~$1.48B.
Notes bear 4.00% interest semi-annually, mature May 1, 2026; unsecured and unsubordinated.
Initial conversion rate 21.3620 shares/$1,000 principal (~$46.81/share), ~20% premium over May 1 stock price.
Proceeds to be used to refinance existing indebtedness, fund qualified pension plan, and general corporate purposes.
Company may not redeem notes prior to maturity; holders may require repurchase at 100% plus interest upon fundamental change.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

FIRSTENERGY CORP incurred convertible notes of $1.5 billion aggregate principal amount at 4.00% per year maturing May 1, 2026.

Instrument: convertible notes
Principal: $1.5 billion aggregate principal amount
Rate: 4.00% per year
Maturity: May 1, 2026
Event: incurrence

Exact text from the filing

On May 4, 2023, FirstEnergy Corp. (the “Company”) completed its previously announced offering of $1.5 billion aggregate principal amount of its 4.00% Convertible Senior Notes due 2026 (the “convertible notes”), which included $200 million aggregate principal amount of the convertible notes purchased pursuant to the full exercise of the option granted to the initial purchasers pursuant to the Purchase Agreement (the “Purchase Agreement”), dated May 1, 2023, among the Company and the initial purchasers party thereto.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

FIRSTENERGY CORP entered into Indenture with The Bank of New York Mellon Trust Company, N.A. valued at $1.5 billion aggregate principal amount (effective 2023-05-04).

Action: entry
Agreement: notes offering
Counterparty: The Bank of New York Mellon Trust Company, N.A.
Value: $1.5 billion aggregate principal amount
Effective: 2023-05-04

Exact text from the filing

In connection with the issuance of the convertible notes, the Company entered into an Indenture, dated May 4, 2023 (the “Indenture”), with The Bank of New York Mellon Trust Company, N.A., as trustee.

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FIRSTENERGY CORP filing history →

Source: SEC EDGAR

accession 0001031296-23-000041

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