TVA To Reset 1999 Series A (TVE) PARRS Power Bonds
April 3, 2013
The interest rate on the Tennessee Valley Authority 1999 Series A Putable Automatic Rate Reset Securities bonds, which are traded on the New York Stock Exchange under the symbol “TVE”, will be reset from 4.15 percent to 3.955 percent on May 1, 2013.
In conjunction with the reset, investors have the option of retaining their bonds with the new rate or requesting repayment at par value ($25 each). Investors who wish to return their bonds must contact the financial institution that holds the bonds to make repayment arrangements.
Repayment arrangements must be completed with The Depository Trust Company by financial institutions no later than Friday, April 19, 2013. Requests for repayment cannot be accepted directly by TVA.
On May 1, 2013, TVA will pay $25 for each bond properly returned, plus a quarterly interest payment of $0.259375, reflecting the current annual interest rate of 4.15 percent.
Beginning with the August 1, 2013, payment, TVA will pay an adjusted quarterly interest payment of $0.247188 per bond based on the new annual interest rate of 3.955 percent.
The 1999 Series A bonds mature on May 1, 2029. They can be identified by the CUSIP number 880591409. The 1999 Series A Offering Circular and additional information about the rate reset and repayment option is available on TVA’s web site at www.tva.com/finance. Copies of the Offering Circular may be requested by calling 1-888-882-4975 (toll free).
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation.
TVA Investor Relations, Knoxville, (888) 882-4975