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.
PENNSYLVANIA
ELECTRIC COMPANY
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
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
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
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
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.
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