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FE > SEC Filings for FE > Form 8-K on 25-Aug-2009All Recent SEC Filings

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Form 8-K for FIRSTENERGY CORP


25-Aug-2009

Termination of a Material Definitive Agreement


Item 1.02 Termination of a Material Definitive Agreement

On August 19, 2009, FirstEnergy Generation Corp. (FGCO), a subsidiary of FirstEnergy Corp. (FirstEnergy) and its subsidiary, FirstEnergy Solutions Corp. (FES), notified Credit Suisse (CS), as administrative agent and lender under the $300 million secured term loan facility, dated as of October 8, 2008, among FGCO, as borrower, FirstEnergy and FES, as guarantors, CS and the other lenders party thereto, as amended (Facility), that it intended to terminate the Facility prior to its scheduled maturity on October 7, 2009. Such termination became effective on August 24, 2009. There are no penalties associated with the early termination.

Since entry into the Facility, FGCO has not drawn upon the Facility. Under the terms of the Facility, FGCO agreed to pay each lender, through CS, an unused commitment fee equal to 0.75% per annum of the daily unused amount of the commitment of such lender during the preceding quarter or other period starting with the date of the Facility or at the completion of the 364 day availability period or the date on which the commitment of such lender would expire or be terminated. The early termination of the Facility reduces the amount of the unused commitment fee required to be paid by FGCO.


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