Allegheny Energy Supply Issues $600 Million of Senior Unsecured Notes

GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE: AYE) announced today that its subsidiary, Allegheny Energy Supply Company, LLC (“AE Supply”), will issue $600 million aggregate principal amount of senior unsecured notes, including $350 million of 5.75% Notes due 2019 and $250 million of 6.75% Notes due 2039.

AE Supply 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 7.80% Notes due 2011. Allegheny expects the offering for the new senior unsecured notes to be completed on or about October 1, 2009.

The bonds have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.