FE · 10-Q · 2026Q1 · Full report
Credit Facilities / Interest Exposure
FIRSTENERGY CORP · 2026-04-28 · Importance 64 · Surprise 42
On October 27, 2025 FirstEnergy and many subsidiaries entered into amended credit facilities that removed a 10 bps credit spread adjustment, permitted a one-week interest period based on daily simple SOFR for term advances, and extended certain maturities by one year for specific facilities. As of March 31, 2026, FirstEnergy’s available committed revolving credit capacity totaled $5,900 million with $4,362 million available under those commitments and total available liquidity of $4,409 million as of April 27, 2026. Most regulated borrowers must comply with debt-to-total-capitalization covenants (generally 65% or 75% for FET) and FE must maintain a consolidated interest coverage ratio of at least 2.50x; FE’s consolidated interest coverage ratio was approximately 4.3x as of March 31, 2026. The amended facilities bear floating rates primarily tied to SOFR and pricing is subject to rating-based pricing grids; FirstEnergy has not hedged its floating rate exposure.
Key facts
- As of March 31, 2026, FirstEnergy had $1,305 million of outstanding short-term borrowings compared with $325 million as of December 31, 2025.
- Interest rates payable on approximately $2.1 billion in FE’s senior unsecured notes are subject to adjustments if ratings decrease, generally with a one-notch downgrade resulting in a 25 basis point coupon increase beginning at BB, Ba1, and BB+ for S&P, Moody’s and Fitch respectively, subject to an aggregate cap of 2% from issuance interest rate.
- FE's amended credit facility maturity is October 2029 with a $1,000 million commitment.
- FET's amended credit facility maturity is October 2030 with a $1,000 million commitment.
- FE's consolidated interest coverage ratio as of March 31, 2026 was approximately 4.3 times and FE is required under its credit facility to maintain a consolidated interest coverage ratio of not less than 2.50 times.
- On October 27, 2025, FE, the Electric Companies, Transmission Companies, and FET each entered into an amended credit facility that extended the maturity date of certain facilities by one year and removed the 10 basis point credit spread adjustment.
- Each borrower under the Amended Credit Facilities (except FE) must maintain a consolidated debt-to-total-capitalization ratio of no more than 65%, and FET must maintain 75%, measured at the end of each fiscal quarter.
- For the three months ended March 31, 2026, the Regulated Companies’ Money Pool average interest rate was 4.22%.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -1.7% | As of March 31, 2026, FirstEnergy had $1,305 million of outstanding short-term borrowings compared with $325 million as of December 31,… |
| net_income | negative | contingent | — | Interest rates payable on approximately $2.1 billion in FE’s senior unsecured notes are subject to adjustments if ratings decrease,… |
| operating_income | negative | contingent | — | Each of the Amended Credit Facilities bears interest at fluctuating interest rates primarily based on SOFR, and FirstEnergy has not hedged… |