TVA to Redeem Debt Securities
July 17, 2003
On August 18, 2003, the Tennessee Valley Authority will redeem all of its 2001 5.875-percent electronotes® due August 15, 2011, and its 2002 5.375-percent electronotes® due August 15, 2017.
The bonds are identified by the CUSIP numbers 88059TAH4 and 88059TBF7, respectively. TVA issued approximately $40.8 million of the 2001 5.875-percent electronotes® and $37.9 million of the 2002 5.375-percent electronotes®.
TVA is redeeming the two bond issues so it can refinance at lower interest rates, which is expected to save TVA more than $850,000 in interest expense per year.
The bonds will be redeemed at 100 percent of their par value. The redemption price and any accrued interest will be paid to eligible holders of the electronotes® through The Depository Trust Company.
TVA electronotes® is a retail program that offers bonds in a variety of structures targeted to individual investors. The bonds are rated Aaa by Moody’s Investors Service and AAA by Standard and Poor’s and Fitch Ratings.
TVA is a wholly owned U.S. government corporation and the nation’s largest public power system. It is completely self-financed through power revenues and proceeds from power program financings. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
John Moulton, Knoxville (865-632-8048) or TVA News Bureau, Knoxville (865-632-6000)
