TVA Prices $1 Billion of 10-Year Global Power Bonds
June 15, 2005
TVA has priced $1 billion of 10-year global power bonds at a coupon rate of 4.375 percent to replace a portion of $2 billion in 6.375-percent bonds that are maturing today.
“The response from the entire investor community for our bonds was outstanding, with nearly half of the issue going to Asian and European investors,” said Chief Financial Officer Michael Rescoe. “The success of the transaction is indicative of TVA’s ability to match its own financial needs with those of investors around the world. This refinancing allows TVA to stay on track with its current interest expense forecast.”
TVA expects the bonds to be rated “AAA” by Standard a nd Poor’s and “Aaa” by Moody’s Investors Service. Bear, Stearns & Co. and Lehman Brothers were joint lead managers for the sale.
The bonds will pay interest semi-annually on Dec. 15 and June 15 and will mature on June 15, 2015.
TVA has made application to list the bonds on the New York Stock Exchange and the Luxembourg Stock Exchange. The bonds will be issued, maintained and transferred through the book-entry system of the Federal Reserve Banks.
TVA is a wholly owned federal corporation and the nation’s largest public power provider. It is completely self-financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.5 million consumers in seven southeastern states.
Media Contact
John Moulton
TVA News Bureau, Knoxville, (865) 632-6000
