Allegheny Energy Supply has tapped the tax-exempt market to issue $235 million in unsecured tax-exempt facilities revenue bonds. "The fact that they could sell 30-year unsecured bonds at 7.7% with a BBB- is pretty extraordinary. It's a terrific execution," says Ellen Lapson, managing director at Fitch Ratings in New York. Munis with ratings of A or higher traditionally dominate the tax-exempt market. David Neurohr, a spokesman at the Greensberg, Pa.-based company, declined to comment or make an official available.

The company was expected to price the issue last week and close the deal today. Proceeds will be used to finance a portion of the pollution control equipment at the company's 1,710 MW coal-fired Hatfield's Ferry Power Station in Masontown, Pa.

For the complete story, click here.