Allegheny Energy, Inc. Authorizes Par Call of First Mortgage Bonds.HAGERSTOWN, Md.--(BUSINESS WIRE)--September 2, 1999-- Allegheny Energy Allegheny Energy (NYSE: AYE) is a traditional public utility based in the Pittsburgh suburb of Greensburg. It services communities in Western Pennsylvania, Western Maryland, Northern West Virginia, Northwest Virginia. , Inc. (NYSE NYSE See: New York Stock Exchange : AYE) announced today that its Pennsylvania subsidiary, West Penn Power Company, which together with affiliates operates under the name Allegheny Power, has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the redemption at par value of all of that subsidiary's outstanding first mortgage bonds. The par call is expected to occur in early October. The redemption will be funded by proceeds from the sale of intangible transition property as part of its securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of transition costs related to the Company's restructuring settlement in Pennsylvania. The funds will be delivered to the trustee in connection with the release of the Company's generation assets from the lien of the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. .
The following bonds will be included in the redemption:
Maturity Date Coupon Rate
June 1, 2003 6.375%
December 1, 2004 7.875%
August 1, 2007 7.375%
February 1, 2021 8.875%
September 1, 2022 7.875%
August 1, 2024 8.125%
May 1, 2025 7.750%
Allegheny Energy, Inc. is a diversified energy company headquartered in Hagerstown, Md. The Allegheny Energy family includes Allegheny Power, which delivers electric energy to about three million people in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. ; Allegheny Energy Supply, which operates and markets competitive retail and wholesale electric generation and operates regulated electric generation for its affiliates; and Allegheny Ventures, Inc., which actively invests in and develops energy-related and telecommunications projects. For more information, check our web site at www.alleghenyenergy.com. |
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