FirstEnergy Received The Remaining $1.2B In Proceeds From The $3.5B Sale Of A 30% Ownership Interest In Its FirstEnergy Transmission, LLC

Deploys final $1.2 billion in proceeds to further strengthen balance sheet, supporting sustainable, long-term growth through industry-leading Energize365 grid investment program

 

AKRON, Ohio, July 17, 2024 /PRNewswire/ -- FirstEnergy Corp. (NYSE:FE) announced today that it received the remaining $1.2 billion in proceeds from the $3.5 billion sale of a 30% ownership interest in its FirstEnergy Transmission, LLC (FET) subsidiary to Brookfield Super-Core Infrastructure Partners (Brookfield). FirstEnergy received the initial proceeds of $2.3 billion from Brookfield when the transaction closed in March. The remaining $1.2 billion in interest-bearing notes were extinguished with Brookfield's final payment on July 17.

FirstEnergy is deploying these proceeds in a credit-accretive manner, consistent with the company's plan to further transform its balance sheet and support its five-year, $26 billion Energize365 grid investment program.

Since late 2021, FirstEnergy has completed approximately $7 billion in strategic equity financings at an equivalent share price of $87 per share, or 36x trailing price-to-earnings valuation. Following the closing of this transaction in March, FirstEnergy's corporate credit rating was upgraded by Moody's and S&P, restoring it to investment grade at all three ratings agencies. The credit ratings at the company's subsidiaries were also upgraded.