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FirstEnergy Announces Satisfaction Of Financing Condition For Tender Offers

Stocks in this article: FE

AKRON, Ohio, March 1, 2013 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) today announced that the financing condition related to the previously announced tender offers by FirstEnergy Solutions Corp. ("FES") and Allegheny Energy Supply Company, LLC ("AE Supply" and together with FES, the "Companies") to purchase for cash any and all outstanding 5.75% Notes due 2019 issued by AE Supply, any and all outstanding 6.75% Notes due 2039 issued by AE Supply, any and all outstanding 6.80% Senior Notes due 2039 issued by FES (each of the foregoing an "Any and All Offer"), and up to the Maximum Tender Amount (as defined below) of the 6.05% Senior Notes due 2021 (the "6.05% Notes" and, collectively with each series of notes subject to the Any and All Offers, the "Notes") issued by FES (the "Maximum Tender Offer"), has been satisfied by FirstEnergy's entry into an agreement earlier today to issue and sell $1.5 billion aggregate principal amount of its senior unsecured notes (the "FirstEnergy Notes") in a registered public offering.  As previously disclosed, FirstEnergy and the Companies intend to use the proceeds from the FirstEnergy Notes and/or borrowings by FES and AE Supply from the intercompany money pool among FirstEnergy's unregulated subsidiaries to fund the consideration to be paid in respect of the Any and All Offers and the Maximum Tender Offer.

The Maximum Tender Offer is subject to an aggregate purchase limit of $1,080,000,000 in aggregate principal amount of 6.05% Notes less the aggregate principal amount of Notes purchased in the Any and All Offers (the "Maximum Tender Amount").  The Any and All Offers will expire at 5:00 p.m., Eastern Daylight Time, on March 13, 2013 and the Maximum Tender Offer will expire on 11:59 p.m., Eastern Daylight Time, on March 27, 2013, in each case unless extended or earlier terminated by the Companies on the terms set forth in the Offer to Purchase.

The tender offers are being made pursuant to the Offer to Purchase and related Letter of Transmittal, each dated February 28, 2013, which set forth a more detailed description of the tender offers.

Information relating to the Offers

In connection with the tender offers, FES and AE Supply have retained Goldman, Sachs & Co., Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., KeyBanc Capital Markets Inc., Santander Investment Securities Inc. and Scotia Capital ( USA) Inc.  to serve as Dealer Managers for the tender offers.  Bondholder Communications Group, LLC has been retained to serve as the Information and Tender Agent for the tender offers.

For additional information regarding the terms of the tender offers, please contact:  Goldman, Sachs & Co. at 800-828-3182 (toll free) or 212-902-5183 (collect) or Morgan Stanley at 800-624-1808 (toll free) or 212-761-1057 (collect).  Requests for documents and questions regarding the tender of Notes may be directed to the Information and Tender Agent at 888-385-2663 (toll free) or 212-809-2663 (collect).

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