Allegheny Power 2014 Annual Report Download - page 122

107
On April 1, 2014, PN and ME repurchased approximately $45 million and $29 million of PCRBs, respectively, which were subject
to a mandatory put on such date. The companies are currently holding the PCRBs for remarketing subject to future market and
other conditions. Additionally, on April 1, 2014, ME retired $150 million of long-term debt at maturity.
On May 19, 2014, FET issued $600 million of 4.35% senior notes due 2025 and $400 million of 5.45% senior notes due 2044.
Proceeds received from the issuance of the senior notes were used to (i) repay borrowings under its revolving credit facility and
the FirstEnergy unregulated companies' money pool; (ii) fund a capital contribution to ATSI; and (iii) for working capital needs and
other general business purposes.
On June 11, 2014, ME and PN issued $250 million of 4% senior notes due 2025 and $200 million of 4.15% senior notes due 2025,
respectively. Proceeds received from the issuance of the senior notes were used to repay ME and PN's borrowings under the
FirstEnergy revolving credit facility and the FirstEnergy regulated companies' money pool.
In addition, in the second quarter of 2014, FG and NG remarketed approximately $57 million and $164 million, respectively, of
PCRBs previously held by the companies. The bonds were remarketed with a fixed interest rate of 3.50% per annum and a mandatory
put date of June 1, 2020.
On September 25, 2014, ATSI issued $400 million of 5% senior notes due 2044. Proceeds received from the issuance of the senior
notes were used: (i) to fund capital expenditures, including capital expenditures related to its transmission investment plans; and
(ii) for working capital needs and other general business purposes.
Also during the third quarter, FG and NG remarketed approximately $140.1 million and $101 million, respectively, of PCRBs. Of
the total, approximately $45 million of PCRBs were remarketed by NG with a fixed interest rate of 3.63%, of which $15.5 million
has a mandatory put date of June 1, 2020 and $29.5 million has a mandatory put date of April 1, 2020. NG also remarketed $56
million of PCRBs with a fixed interest rate of 3.95% and a mandatory put date of May 1, 2020; FG remarketed $50 million of PCRBs
with a fixed interest rate of 3.10% and a mandatory put date of March 1, 2019; and $90.1 million of PCRBs with a fixed interest rate
of 3.00% and a maturity date of May 15, 2019.
On November 25, 2014, PE issued $200 million of 4.44% FMBs due November 15, 2044. Proceeds received from the issuance of
the FMBs were used: (i) to refinance PE's outstanding $175 million of 5.35% FMBs due November 15, 2014; (ii) to repay PE's
borrowings under the FirstEnergy regulated companies' money pool; and (iii) for other general business purposes.
On December 1, 2014, NG repurchased approximately $26 million PCRBs, which were subject to a mandatory put on such date.
NG is currently holding these PCRBs for remarketing subject to future market and other conditions.
On December 11, 2014, TrAIL issued $550 million of 3.85% senior notes due June 1, 2025. Proceeds received from the issuance
of the senior notes were used: (i) to repay TrAIL's outstanding $450 million of 4.00% senior notes due January 15, 2015; (ii) to fund
capital expenditures; and (iii) for working capital needs and other general business purposes.
On December 19, 2014, the maturity date for a $200 million term loan agreement for which FE is the borrower was extended an
additional year to December 31, 2016.
See Note 6, Leases for additional information related to capital leases.
Securitized Bonds
Environmental Control Bonds
The consolidated financial statements of FirstEnergy include environmental control bonds issued by two bankruptcy remote, special
purpose limited liability companies that are indirect subsidiaries of MP and PE. Proceeds from the bonds were used to construct
environmental control facilities. The special purpose limited liability companies own the irrevocable right to collect non-bypassable
environmental control charges from all customers who receive electric delivery service in MP's and PE's West Virginia service
territories. Principal and interest owed on the environmental control bonds is secured by, and payable solely from, the proceeds of
the environmental control charges. The right to collect environmental control charges is not included as an asset on FirstEnergy's
consolidated balance sheets. Creditors of FirstEnergy, other than the special purpose limited liability companies, have no recourse
to any assets or revenues of the special purpose limited liability companies. As of December 31, 2014 and 2013, $450 million and
$472 million of environmental control bonds were outstanding, respectively.