Allegheny Energy unit to issue $600M in debt

GREENSBURG, Pa. — Allegheny Energy, a utility, said Wednesday that a subsidiary will issue $600 million aggregate principal amount of senior unsecured notes.

The issuance includes $350 million of 5.75 percent notes due 2019 and $250 million of 6.75 percent notes due 2039.

The unit will apply the net proceeds of the notes offering to repay its existing $447 million term loan and to finance the repurchase of up to $150 million of its outstanding 7.8 percent notes due 2011.

Allegheny expects the offering for the new senior unsecured notes to be completed on or about Oct. 1.