FE · 10-Q · 2026Q1 · Full report

FE Convertible Notes Issuance

FIRSTENERGY CORP · 2026-04-28 · Importance 59 · Surprise 60

FirstEnergy discloses its issuance and active management of convertible and unsecured note financing: FE issued $1.5 billion of 2026 Convertible Notes in May 2023 (4.00%), repurchased ~$1.2 billion of those in June 2025, and issued $1.35 billion of 2029 Convertible Notes (3.625%) and $1.15 billion of 2031 Convertible Notes (3.875%) in June 2025 with net proceeds of approximately $2.47 billion. The company states proceeds from recent non-convertible senior unsecured offerings (e.g., FE PA $300m and $550m in March 2026) are expected to be used to refinance existing indebtedness, fund capital expenditures, working capital and general corporate purposes. FE notes conversion and settlement mechanics for the 2026 notes (cash settlement premium approximately $27 million as of March 31, 2026) and directs readers to Note 6 for details on conversion features.

Key facts

• Corporate/Other results included $4 million (after-tax) of higher interest expense as a result of the issuance of the 2029 Convertible Notes and 2031 Convertible Notes, partially offset by the redemption of a portion of the 2026 Convertible Notes.
• In June 2025, FE repurchased approximately $1.2 billion aggregate principal amount of the 2026 Convertible Notes.
• On May 4, 2023, FE issued $1.5 billion aggregate principal amount of 2026 Convertible Notes at a rate of 4.00% per year; proceeds were approximately $1.48 billion net of issuance costs.
• On June 12, 2025, FE issued $1.35 billion aggregate principal amount of 2029 Convertible Notes at 3.625% and $1.15 billion aggregate principal amount of 2031 Convertible Notes at 3.875%; proceeds were approximately $2.47 billion net of issuance costs.
• Based on FE common stock price and conversion price as of March 31, 2026, the cash settlement premium on the 2026 Convertible Notes would be approximately $27 million.

Impact estimates