Back to top

Re: Company Order

Indenture Agreement

Re: Company Order | Document Parties: PENNSYLVANIA ELECTRIC CO | The Bank of New York Mellon You are currently viewing:
This Indenture Agreement involves

PENNSYLVANIA ELECTRIC CO | The Bank of New York Mellon

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: Re: Company Order
Governing Law: New York     Date: 10/6/2009
Law Firm: Akin Gump    

Re: Company Order, Parties: pennsylvania electric co , the bank of new york mellon
50 of the Top 250 law firms use our Products every day

EXHIBIT 4.1

 

 

 

 

 

September 30, 2009

 

The Bank of New York Mellon

101 Barclay Street, Floor 8W

New York, New York 10286

 

 

 

 

Re: Company Order

 

Ladies and Gentlemen:

 

Pursuant to Section 2.05(c) of the Indenture dated as of April 1, 1999, as amended (the “ Senior Note Indenture ”) between Pennsylvania Electric Company (the “ Company ”) and United States Trust Company of New York, under which The Bank of New York Mellon is the successor trustee (the “ Senior Note Trustee ”), we deliver to you herewith an Officers’ Certificate, Opinions of Counsel of Akin Gump Straus Hauer & Feld LLP, New York, New York and Wendy E. Stark, Associate General Counsel of FirstEnergy Corp., and Board Resolutions (as those terms are defined in the Senior Note Indenture).

 

You are hereby requested to authenticate, in the manner provided in the Senior Note Indenture, $250,000,000 aggregate principal amount of the Company’s 5.20% Senior Notes due 2020 (the “ 2020 Notes ”) and $250,000,000 aggregate principal amount of the Company’s 6.15% Senior Notes due 2038 (the “ 2038 Notes ”) (collectively, the “ Notes ”), as concurrently herewith delivered to you, duly executed by duly authorized officers of the Company, as provided in the Senior Note Indenture.

 

              The designation of the 2020 Notes shall be “5.20% Senior Notes due 2020”;

 

              The designation of the 2038 Notes shall be “6.15% Senior Notes due 2038”;

 

              The Original Issue Date for the Notes shall be September 30, 2009;

 

              The Stated Maturity of the 2020 Notes shall be April 1, 2020;

 

              The Stated Maturity of the 2038 Notes shall be October 1, 2038;

 

              The 2020 Notes shall bear interest at the rate of FIVE AND TWENTY HUNDREDTHS          

     per centum (5.20%) per annum;

 

              The 2038 Notes shall bear interest at the rate of SIX AND FIFTEEN HUNDREDTHS per centum (6.15%) per annum; and

 

              The Interest Payment Dates for the Notes shall be April 1 and October 1 of each year,

     commencing April 1, 2010.

 

 

 

 


 

 

 

 

 

Each of the Notes will be issued in the form of a Global Note to The Depository Trust Company, or its nominee, as depositary therefor, in the forms attached hereto as Exhibit A and Exhibit B .  Set forth within each form of the Global Note are the terms regarding the optional redemption of the Notes.  You are hereby further requested to make available for delivery such Notes, as so authenticated, to the Company.

 

 

 

 

2


 

 

 

 

Very truly yours,

 

PENNSYLVANIA ELECTRIC COMPANY

 

 

 

By:   /s/ Randy Scilla               

                                                                                                        Name:  Randy Scilla

                                                                                                                      Title:  Assistant Treasurer     

 

Receipt of the aforementioned items is

hereby acknowledged.

 

 

THE BANK OF NEW YORK MELLON,

as Trustee

 

 

By: /s/ Carlos Luciano _________________

Name: Carlos Luciano

Title: Vice President

 

 

Signature Page to Company Order

 

 


 

 

 

 

Exhibit A

 

[FORM OF GLOBAL NOTE OF THE 2020 NOTES]

 

 

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE “ DEPOSITARY ”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY AMOUNT PAYABLE  THEREUNDER IS MADE PAYABLE TO CEDE & CO. OR SUCH OTHER NAME), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.  UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR CERTIFICATED NOTES REGISTERED IN THE NAMES OF THE VARIOUS BENEFICIAL HOLDERS HEREOF AS THEN CERTIFIED TO THE COMPANY AND THE TRUSTEE BY THE DEPOSITARY OR A SUCCESSOR DEPOSITARY, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO ITS NOMINEE OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  THIS NOTE MAY BE EXCHANGED FOR CERTIFICATED NOTES REGISTERED IN THE NAMES OF THE VARIOUS BENEFICIAL OWNERS HEREOF ONLY IF (A) THE DEPOSITARY (I) HAS NOTIFIED THE COMPANY THAT IT IS UNWILLING OR UNABLE TO CONTINUE AS DEPOSITARY OR (II) HAS CEASED TO BE A CLEARING AGENCY REGISTERED UNDER THE EXCHANGE ACT, AND, IN EITHER CASE, A SUCCESSOR DEPOSITARY IS NOT APPOINTED BY THE COMPANY WITHIN 90 DAYS, OR (B) THE COMPANY ELECTS TO ISSUE CERTIFICATED NOTES TO BENEFICIAL OWNERS (AS CERTIFIED TO THE COMPANY AND THE TRUSTEE BY THE DEPOSITARY OR A SUCCESSOR DEPOSITARY) OF ALL NOTES OF THE SERIES DESIGNATED BELOW.

 

PENNSYLVANIA ELECTRIC COMPANY

5.20% SENIOR NOTE DUE 2020

 

ORIGINAL ISSUE DATE:  September 30, 2009

 

INTEREST RATE:  5.20%

 

MATURITY DATE:  April 1, 2020

 

INTEREST PAYMENT DATES:  Each April 1 and October 1, commencing April 1, 2010

 

PRINCIPAL AMOUNT:  $250,000,000                                                     NUMBER:  1                                

                                                                                                           CUSIP:  708696 BW8

 

 

 

 

 

 


 

 

 

 

PENNSYLVANIA ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the Commonwealth of Pennsylvania (the “ Company ”), for value received hereby promises to pay to Cede & Co. or registered assigns, the principal sum of TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000) on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date specified above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on the April 1 and October 1 in each year, commencing April 1, 2010, at the per annum Interest Rate set forth above, until the principal hereof is paid or duly provided for.  Interest on this Note will accrue from and including the immediately preceding Interest Payment Date in respect of which interest has been paid or made available for payment (or from and including the Original Issue Date if no interest has been paid or made available for payment) to, but excluding, the applicable Interest Payment Date or Maturity, as the case may be.  No interest shall accrue on the Maturity Date, so long as the principal amount of this Global Note is paid on the Maturity Date.  The interest so payable and punctually paid or duly provided for on any such Interest Payment Date will, as provided in the Indenture (as defined below), be paid to the Person in whose name this Note is registered at the close of business on the Regular Record Date for such interest, which shall be the Business Day immediately preceding the applicable Interest Payment Date, so long as this Note is held in book-entry only form.  Otherwise, the Regular Record Date shall be the March 15 or September 15, as the case may be, next preceding such Interest Payment Date (whether or not a Business Day); provided, that the first Interest Payment Date for any part of this Note, the Original Issue Date of which is after a Regular Record Date but prior to the applicable Interest Payment Date, shall be the Interest Payment Date following the next succeeding Regular Record Date; and provided, that interest payable on the Maturity Date set forth above or, if applicable, upon redemption or acceleration, shall be payable to the Person to whom principal shall be paid.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee (defined below), notice whereof shall be given to Holders of Notes of this Series not more than fifteen days or fewer than ten days prior to such Special Record Date.

 

This Global Note is a global security in respect of a duly authorized issue of 5.20% Senior Notes due 2020 (the “ Notes of this Series ”, which term includes any Global Notes representing such Notes) of the Company issued and issuable in one or more series under an Indenture, dated as of April 1, 1999 (such Indenture as originally executed and delivered and as supplemented or amended from time to time thereafter, together with any constituent instruments establishing the terms of particular Notes, being herein called the “ Indenture ”), between the Company and United States Trust Company of New York, under which The Bank of New York Mellon is successor trustee (herein called the “ Trustee ”, which term includes any successor Trustee under the Indenture) and indentures supplemental thereto.  Under the Indenture, one or more series of notes may be issued and, as used herein, the term “ Notes ” refers to the Notes of this Series and any other outstanding series of Notes.  Reference is hereby made to the Indenture for a more complete statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms and conditions upon which the Notes are, and are to be, authenticated and delivered.  The acceptance of this Note shall be deemed to constitute the consent and agreement by the Holder

 

 

 

 

2


 

 

 

hereof to all of the terms and provisions of the Indenture.  This Global Note has been issued in respect of the series designated on the first page hereof.

 

Each Note of this Series shall be dated and issued as of the date of its authentication by the Trustee and shall bear an Original Issue Date.  Each Note or Global Note issued upon transfer, exchange or substitution of such Note or Global Note shall bear the Original Issue Date of such transferred, exchanged or substituted Note or Global Note, as the case may be.

 

Notes of this Series are redeemable, as a whole or in part, at the Company’s option, at any time, at a redemption price equal to the greater of:

 

·  

100% of the principal amount of the Notes of this Series being redeemed, or

 

·  

as determined by the Independent Investment Banker (as defined below), the sum of the present values of the Remaining Scheduled Payments (as defined below), discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 25 basis points,

 

plus, in each case, accrued and unpaid interest on such Notes to the date of redemption.

 

Adjusted Treasury Rate ” means, with respect to any redemption date:

 

·  

the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “ H.15(519) ” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life, yields for two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from these yields on a straight line basis, rounding to the nearest month); or

 

·  

if the release (or any successor release) is not published during the week preceding the calculation date or does not contain these yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.  The Adjusted Treasury Rate will be calculated on the third Business Day preceding the redemption date.

 

Comparable Treasury Issue ” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes of this Series to be redeemed that would be utilized, at the time of selection and in

 

 

 

 

3


 

 

 

 

accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes of this Series to be redeemed (“ Remaining Life ”).

 

Comparable Treasury Price ” means (1) the average of three Reference Treasury Dealer Quotations for the redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than three Reference Treasury Dealer Quotations, the average of all such quotations.

 

Independent Investment Banker ” means one of the Reference Treasury Dealers appointed by the Company.

 

Reference Treasury Dealer ” means:

 

·  

each of Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC, and their respective successors; provided, however, that if any of the foregoing cease to be a primary U.S. Government securities dealer in the United States (a “ Primary Treasury Dealer ”), the Company shall substitute therefor another Primary Treasury Dealer; and

 

·  

any other Primary Treasury Dealer selected by the Independent Investment Banker after consultation with the Company.

 

Reference Treasury Dealer Quotations ” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding the redemption date.

 

Remaining Scheduled Payments ” means, with respect to the Notes of this Series to be redeemed, the remaining scheduled payments of principal of and interest on such Notes that would be due after the related redemption date but for such redemption.  If such redemption date is not an Interest Payment Date with respect to such Notes, the amount of the next succeeding scheduled interest payment on such Notes will be reduced by the amount of interest accrued on such Notes to such redemption date.

 

Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Notes of this Series or any portion of the Notes of this Series called for redemption (unless the Company defaults in the payment of the redemption price and accrued interest).  On or before the redemption date, the Company will deposit with a paying agent (or the Trustee) money sufficient to pay the redemption price of and accrued interest on the Notes of this Series to be redeemed on such date.  If less than all the Notes of this Series are to be redeemed, the Notes of this Series to be redeemed shall be selected by the Trustee by such method as the Trustee shall deem fair and appropriate.

 

 

 

4


 

 

 

 

Notice of redemption shall be given by mail to Holders of Notes of this Series, not less than 30 days nor more than 60 days prior to the date fixed for redemption, all as provided in the Indenture.  As provided in the Indenture, notice of redemption at the election of the Company as aforesaid may state that such redemption shall be conditional upon the receipt by the Trustee of money sufficient to pay the principal of and premium, if any, and interest, if any, on Notes of this Series on or prior to the date fixed for such redemption; a notice of redemption so conditioned shall be of no force or effect if such money is not so received and, in such event, the Company shall not be required to redeem such Notes.

 

In the event of redemption of Notes of this Series in part only, a new Note or Notes of this Series, of like tenor, representing the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

Interest payments for this Global Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  If any Interest Payment Date or date on which the principal of this Global Note is required to be paid is not a Business Day, then payment of principal, premium or interest need not be made on such date but may be made on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date or date on which the principal of this Global Note is required to be paid and, in the case of timely payment thereof, no interest shall accrue for the period from and after such Interest Payment Date or the date on which the principal of this Global Note is required to be paid.

 

The Company, at its option, and subject to the terms and conditions provided in the Indenture, will be discharged from any and all obligations in respe


 
SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)


Try our advanced search >>
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Get Email Updates
Email:
This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more