West Penn Power Co. priced a $115 million Rule 144A stranded cost ABS last week with a structure never before used in the sector. The deal is structured so that bondholders are not paid interest or principal for three years, allowing West Penn to pay down outstanding Series 1999-A stranded cost securitization. Interest and principal will accrete, or accrue, during that time, and be paid over the remaining 18 months of the deal's life.

Fitch Ratings analyst Jennifer San Cartier, said the deal is the first in the sector to use such a structure and that she has not heard of any other issuers intending to use it on future deals at this time.

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