Tennessee Valley Authority News
TVA Prices $500 Million of 30-Year Global Power Bonds
Barclays Capital and Morgan Stanley are joint book-running managers for the transaction. Banc of America Securities, Deutsche Bank Securities, Lehman Brothers and Merrill Lynch, are co-managers. Proceeds from the sale will be used by TVA to refinance existing debt.
Investors that purchased the bonds include money managers, insurance companies, pension funds and institutions that typically have a need for highly rated investments.
"We were pleased to see widespread demand for these bonds," said TVA Senior Vice President and Treasurer
Attractive interest rates, which remain historically low, and calmer market conditions at the beginning of this week contributed to the success of the transaction, according to Hoskins. "This financing will benefit TVA and its power customers by helping to control TVA's interest expense for years to come," he said.
The bonds are expected to be rated "Aaa" by Moody's Investors Service and "AAA" by Fitch Ratings and Standard and Poor's. Interest will be paid semi-annually
TVA is applying to list the bonds on the New York Stock Exchange. The bonds will be issued, maintained and transferred through the book-entry system of the Federal Reserve Banks. Transactions may be cleared and settled by international participants through Clearstream and Euroclear. The bonds can be identified by the CUSIP number 880591ED0.
TVA is the nation's largest public power provider and is completely self-financing. TVA provides power to large industries and 159 power distributors that serve approximately 8.8 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
SOURCE Tennessee Valley Authority
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