FirstEnergy receives remaining $1.2B in proceeds from FET subsidiary sale

FirstEnergy (FE) announced that it received the remaining $1.2B in proceeds from the $3.5B sale of a 30% ownership interest in its FirstEnergy Transmission, or FET, subsidiary to Brookfield Super-Core Infrastructure Partners (BIP). FirstEnergy received the initial proceeds of $2.3B from Brookfield when the transaction closed in March. The remaining $1.2B 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,” the company stated. “With the successful execution of these strategic transactions, FirstEnergy now has a strong balance sheet to support important investments in our regulated businesses that enhance service reliability, the customer experience and the transition to a more electrified economy. FirstEnergy has a straightforward, transparent operating model and a culture focused on continuous improvement and driving results, making us well-positioned to become a premier electric company benefiting our customers, investors, communities and employees,” added Brian Tierney, FirstEnergy President and Chief Executive Officer.