Allegheny Power 2013 Annual Report Download - page 53

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38
Pollution Control Revenue Bonds
As of December 31, 2013, FirstEnergy’s currently payable long-term debt included approximately $809 million ($736 million
applicable to FES) of variable interest rate PCRBs, the bondholders of which are entitled to the benefit of irrevocable direct pay
bank LOCs. The interest rates on the PCRBs are reset daily or weekly. Bondholders can tender their PCRBs for mandatory purchase
prior to maturity with the purchase price payable from remarketing proceeds or, if the PCRBs are not successfully remarketed, by
drawings on the irrevocable direct pay LOCs. The subsidiary obligor is required to reimburse the applicable LOC bank for any such
drawings or, if the LOC bank fails to honor its LOC for any reason, must itself pay the purchase price.
The LOCs for FirstEnergy's variable interest rate PCRBs outstanding as of December 31, 2013 were issued by the following banks:
Bank
Aggregate
Amount(1) Termination Date
Reimbursements
of Draws Due
(In millions)
UBS $ 268 April 2014 April 2014
CitiBank N.A. 164 June 2014 June 2014
Wells Fargo 151 March 2014 March 2014
The Bank of Nova Scotia 48 April 2014 April 2014
The Bank of Nova Scotia 82 April 2015 April 2015
The Bank of Nova Scotia 96 December 2015 December 2015
Total $ 809
(1) Excludes approximately $9 million of applicable interest coverage.
Long-Term Debt Capacity
FE's and its subsidiaries' access to capital markets and costs of financing are influenced by the credit ratings of their securities.
The following table displays FE’s and its subsidiaries’ credit ratings as of December 31, 2013:
Senior Secured Senior Unsecured
Issuer S&P Moody’s Fitch S&P Moody’s Fitch
FE — — — BB+ Baa3 BB+
FES — — — BBB- Baa3 BB+
AE Supply — — — BBB- Baa3 BB+
AGC — — — BBB- Baa3 BBB
ATSI — — — BBB- Baa2 BBB+
CEI BBB+ Baa1 BBB BBB- Baa3 BBB-
JCP&L — — — BBB- Baa2 BBB
ME — — — BBB- Baa2 BBB+
MP BBB+ Baa1 A- — — —
OE BBB+ A3 BBB+ BBB- Baa2 BBB
PN — — — BBB- Baa2 BBB
Penn BBB+ A3 BBB+ — — —
PE BBB+ Baa1 A- — — —
TE BBB Baa1 BBB — — —
TrAIL — — — BBB- Baa1 BBB+
WP BBB+ A3 A- — — —
Debt capacity is subject to the consolidated debt to total capitalization limits in the Facilities previously discussed. As of December 31,
2013, FE and its subsidiaries could issue additional debt of approximately $5.3 billion and remain within the limitations of the financial
covenants required by the Facilities (as amended). As of December 31, 2013, FES' incremental debt capacity under its consolidated
debt to total capitalization financial covenant is also $5.3 billion given FE's consolidated debt to total capitalization ratio under its
Facility, as amended.