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 3.360% to 2.216% on May 1, 2020.
“This reset will continue to provide investors an attractive return on investment in this market environment, while saving TVA $2.7 million annually,” said TVA Treasurer and Chief Risk Officer Tammy Wilson. “These savings will be used to keep power rates low for the 10 million people of the Tennessee Valley.”
In conjunction with the reset, investors have the option of retaining their bonds with the new rate or requesting repayment at par value of $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 Tuesday, April 21, 2020. Requests for repayment cannot be accepted directly by TVA.
On May 1, 2020, TVA will pay $25 for each bond properly returned, plus a quarterly interest payment of $0.210000, reflecting the current annual interest rate of 3.360%.
Beginning with the Aug. 1, 2020 payment, TVA will pay an adjusted quarterly interest payment of $0.138500 per bond based on the new annual interest rate of 2.216%.
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/investors. 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 10 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.
Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
Investor Relations website
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