Tennessee Valley Authority
Putable Automatic Rate Reset Securities (PARRS)
Rate to Reset on June 1, 2012 for TVC
The interest rate on the TVA 1998 Series D (NYSE: TVC) PARRS bonds (CUSIP number 880591300) will reset down on June 1, 2012 from the current rate of 4.728% to 4.060%. Investors holding TVC bonds have the option of retaining their bonds with the new rate or requesting repayment at par value ($25 per bond). Investors who wish to return the bonds for repayment must contact their financial institution to request repayment and authorize arrangements to be made on their behalf. Repayment arrangements must be completed no later than May 22, 2012 by the investor's financial institution. Requests for repayment cannot be accepted directly by TVA.
Rate to Reset on May 1, 2012 for TVE
The interest rate on the TVA 1999 Series A (NYSE: TVE) PARRS bonds (CUSIP number 880591409) will reset down on May 1, 2012 from the current rate of 4.50% to 4.15%. Investors holding TVE bonds have the option of retaining their bonds with the new rate or requesting repayment at par value ($25 per bond). Investors who wish to return the bonds for repayment must contact their financial institution to request repayment and authorize arrangements to be made on their behalf. Repayment arrangements must be completed no later than April 20, 2012 by the investor’s financial institution. Requests for repayment cannot be accepted directly by TVA.
Update: Important Legal Notices
TVA has issued legal notices to clarify the procedures that you should follow in order to exercise the put option in the event that a coupon rate reset notice is given and to clarify the procedures used to determine whether the coupon rate on the PARRS will be reset.
1998 Series D (TVC) Legal Notice
(PDF, 95 kb)
1999 Series A (TVE) Legal Notice
(PDF, 94 kb)
TVC is sometimes called: (TVA 28), (TN Vly PARRS)
TVE is sometimes called: (TVA 29), (TVA PARRS)
Putable Automatic Rate Reset Securities (PARRS) Reset History
