First Energy (NYSE: FE) said Thursday it agreed to sell an additional 30% interest in its FirstEnergy Transmission business to affiliates of Brookfield Asset Management (NYSE: BAM) with a net worth of $3.5B.
FET is a holding company for three of FirstEnergy’s (FE) entities regulated by FERC – American Transmission Systems, Mid-Atlantic Interstate Transmission, and Trans-Allegheny Interstate Line Company – which own one of the largest transmission lines in PJM.
FirstEnergy (FE) will remain the majority owner of 50.1% of FET after the closing, and FirstEnergy employees will continue to operate the business; Brookfield Super-Core Infrastructure Partners, which bought 19.9% of FET in May, will own 49.9%.
FirstEnergy ( FE ) said the proceeds will be used to accelerate the restructuring of its debt portfolio, after cutting $2.5B from its debt last year.
The company also raised its long-term plan for 2021-25 to about $18B, an increase of ~$1.B from the $17B target set in 2021.
FirstEnergy ( FE ) is poised to deliver solid cash flow over the next few years, despite its relatively high debt, Power Hedge writes in a recent analysis posted on Seeking Alpha.