Allegheny Power 2013 Annual Report Download - page 133

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LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS
The following tables present outstanding long-term debt and capital lease obligations for FirstEnergy and FES as of December 31,
2013 and 2012:
As of December 31, 2013 As of December 31
(Dollar amounts in millions) Maturity Date Interest Rate 2013 2012
FirstEnergy:
FMBs 2014 - 2043 3.340% - 9.740% $ 3,166 $ 2,587
Secured notes - fixed rate 2017 - 2037 6.150% - 7.880% 1,804 2,113
Secured notes - variable rate — 50
Total secured notes 1,804 2,163
Unsecured notes - fixed rate 2014 - 2039 3.500% - 7.350% 11,076 11,145
Unsecured notes - variable rate 2014 - 2015 0.020% - 1.665% 959 959
Total unsecured notes 12,035 12,104
Capital lease obligations 188 176
Unamortized debt premiums 9 45
Unamortized fair value adjustments 44 103
Currently payable long-term debt (1,415) (1,999)
Total long-term debt and other long-term obligations $ 15,831 $ 15,179
FES:
Secured notes - fixed rate 2015 - 2017 5.150% - 12.000% $ 188 $ 689
Secured notes - variable rate — 50
Total secured notes 188 739
Unsecured notes - fixed rate 2014 - 2039 2.150% - 6.800% 2,077 2,769
Unsecured notes - variable rate 2014 - 2015 0.130% - 0.160% 736 686
Total unsecured notes 2,813 3,455
Capital lease obligations 22 27
Unamortized debt discounts (1) (1)
Currently payable long-term debt (892) (1,102)
Total long-term debt and other long-term obligations $ 2,130 $ 3,118
On March 5, 2013, FE issued in aggregate $1.5 billion of senior unsecured notes in two series: $650 million of 2.75% senior notes
due March 15, 2018 and $850 million of 4.25% senior notes due March 15, 2023. The stated interest rates are subject to adjustments
based upon changes in the credit ratings of FirstEnergy but will not decrease below the issued rates. The proceeds were used to
repay short-term borrowings and to invest in the money pool for FES and AE Supply's use in funding a portion of their concurrent
tender offers.
On March 28, 2013, pursuant to tender offers launched in February 2013, FES and AE Supply repurchased $369 million and $294
million, respectively, of outstanding senior notes with interest rates ranging from 5.75% to 6.8%. The $369 million of FES repurchases
consisted of original maturities of $252 million due 2021 and $117 million due 2039. The $294 million of AE Supply repurchases
consisted of original maturities of $194 million due 2019 and $100 million due 2039. FES and AE Supply paid $67 million and $43
million, respectively, in tender premiums to repurchase the tendered senior notes. FirstEnergy recorded a loss on debt redemption
of $119 million (FES - $71 million), including such premiums and other related expenses. The tender premiums paid are included
in cash flows from financing activities in the Consolidated Statement of Cash Flows.
In March 2013, ME issued $300 million of 3.50% senior unsecured notes due March 15, 2023. Proceeds from this offering were
used to repay $150 million of ME 4.95% senior unsecured notes that matured in March 2013 and short-term borrowings.
On April 15, 2013, FES redeemed $400 million of its 4.80% senior notes due 2015 and recorded a loss on debt redemption of $32
million including $31 million of make-whole premiums paid. The make-whole premiums paid are included in cash flows from operating
activities in the Consolidated Statement of Cash Flows.
On May 8, 2013, FE, FES, AE Supply and FE's other borrowing subsidiaries entered into extensions and amendments to the three
existing multi-year syndicated revolving credit facilities. Each facility was extended until May 2018, unless the lenders agree, at the
request of the applicable borrowers, to an additional one-year extension. The FE Facility was amended to increase the lending