American Transmission Systems, Incorporated )

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Additionally, in October 2015, ATSI (American Transmission Systems, Incorporated) “issued in total $150 million of senior notes: $75 million of 4.00% senior notes due April 2026 and $75 million of 5.23% senior notes due October 2045. The proceeds resulting from the issuance of the senior notes were used: (i) to fund capital expenditures, including with respect to ATSI’s transmission expansion plans; (ii) for working capital needs and other general business purposes; and (iii) to repay borrowings under the FirstEnergy regulated companies’ money pool.” (FirstEnergy Corp., p.38). In 2015, FirstEnergy paid $879 million for redemptions and payment for outstanding unsecured notes, PCRBs, FMBs, term loans, senior secured notes, and long-term…show more content…
of no more than 65%, and 75%” for FirstEnergy Transmission, LLC (FET). (FirstEnergy Corp., p.34) “FirstEnergy has a $1 billion variable rate term loan credit agreement with a maturity date of March 31, 2019. The initial borrowing under the term loan, which took the form of Eurodollar rate advance, may be converted from time to time, in whole or in part, to alternate base rate advances or other Eurodollar rate advances” (FirstEnergy Corp., p.35). “During the second quarter of 2015, FE refinanced a $200 million variable interest term loan, maturing on December 31, 2016 with a new $200 million variable interest term loan maturing on May 29, 2020” (FirstEnergy Corp., p.38). Overall, the increased cash flow from financing activities that FirstEnergy and its subsidiaries receive is being invested into the company’s goal of enhancing the reliability and efficiency of the electric system, being used for working capital, or reducing existing debt. FirstEnergy’s competitor, AEP, relies primarily on cash flows from operations, debt issuances, and its existing cash and cash equivalents to fund its liquidity and investing activities (American Electric Power, p.38). AEP uses unsecured loans, Pollution Control Bonds, securitized accounts receivables, and letters of credit to meet short-term borrowing needs to finance activities. As for long-term borrowing needs, AEP “generally uses short-term borrowings to fund working
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