By Cristal Cody
Chicago, March 17 – FirstEnergy Transmission LLC sold $500 million of 2.866% notes due Sept. 15, 2028 at a Treasuries plus 155 basis points spread, according to a market source.
Initial price talk had the notes coming with a yield in the 3.25% to 3.375% area. The issue priced off the investment-grade desk, but the notes are rated high-yield by both Fitch Ratings and S&P Global Ratings. Moody’s Investors Service cut the issuer to junk status in November.
Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC worked as bookrunners.
Proceeds will be used to maintain the company’s capital structure, to finance capital improvements, to repay short-term borrowings outstanding under its revolving credit facility and for general corporate purposes, including funding working capital needs and day-to-day operations, according to Fitch.
The diversified energy holding company is based in Akron, Ohio.
| Issuer: | FirstEnergy Transmission LLC
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| Issue: | Notes
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| Amount: | $500 million
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| Maturity: | Sept. 15, 2028
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| Bookrunners: | Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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| Coupon: | 2.866%
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| Spread: | Treasuries plus 155 bps
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| Trade date: | March 17
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| Ratings: | S&P: BB
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| Fitch: BB+
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| Price talk: | 3.25% to 3.375% area
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