FirstEnergy completes $2.5 billion convertible note offering
FirstEnergy completed the sale of $2.5 billion of convertible senior notes on June 12, 2025, consisting of $1.35 billion due 2029 and $1.15 billion due 2031. The company expects about $1.2 billion of the net proceeds to fund a repurchase of part of its $1.5 billion of 4.00% convertible notes due 2026, with the rest for debt repayment, redemption or refinancing, and general corporate purposes. For shareholders, the notes could lead to new common shares or cash settlement of conversions above principal, and the filing notes that 2026 note repurchases may affect the stock price.
Key points
- $1.35 billion of 3.625% convertible notes due January 15, 2029 and $1.15 billion of 3.875% convertible notes due January 15, 2031, including full exercise of the initial purchasers' options for $200 million and $150 million, respectively
- Expected net proceeds of about $2.47 billion, with about $1.2 billion planned for repurchasing part of the $1.5 billion of 2026 notes
- Initial conversion price of about $47.78 per share, a premium of about 20% over the June 9, 2025 closing price on the NYSE
- Hedging by holders of the 2026 notes could increase or reduce the market price of the stock and could result in a higher effective conversion price
The filing
Written by AI on Nov 8, 2026, 1:10 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on June 12, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.