FirstEnergy To Offer $1 Bln Of Convertible Senior Notes

(RTTNews) - FirstEnergy Corporation (FE), an electric utility firm, announced on Monday that it intends to offer $1 billion aggregate principal amount of convertible senior notes due 2026, in a private placement.

The firm has plans to grant an option to the initial purchasers to buy up to an additional $150 million aggregate principal amount of the convertible notes within a 13-day long period.

FirstEnergy intends to use the net proceeds from the offering to refinance existing indebtedness, to fund its qualified pension plan, and general corporate purposes.

"The interest rate, initial conversion rate, and other terms of the convertible notes will be determined at the pricing of the offering," the company said in a statement.