Beacon Journal business writer
Akron-based FirstEnergy Corp. said Thursday it would begin buying up to $1.08 billion in bonds of its subsidiaries FirstEnergy Solutions and Allegheny Energy Supply Co.
The parent of Ohio Edison plans to reduce its debt in 2013 by $1.5 billion.
“We issued the tender offers to help us strengthen the balance sheets of our competitive subsidiaries,” spokeswoman Tricia Ingraham said.
The company said it would use a number of methods, including speeding up the sale of its water-powered electricity plants in 2013, retiring a combination of both tax-exempt bonds and taxable debt, working to refinance short-term borrowings with long-term debt, working with banks to extend the dates of existing obligations totaling $5.5 billion for an additional year to 2018 and considering another program valued at $300 million.
The steps are to help the company’s growth initiatives, including transmission expansion plans, President and Chief Executive Officer Anthony J. Alexander said. He cited plans to increase the capacity at some of its nuclear plants through new turbines, including upgrades this year at Perry and Beaver Valley 2 or Beaver Valley 1.
The company said some buyback offers expire at 5 p.m. March 13 and others at 11:59 p.m. March 27.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.