Mississippi Power assumes $270 million of 7.13% bonds from Juniper

By Jennifer Chiou

New York, Oct. 26 - Mississippi Power Co. assumed $270 million face value of 7.13% taxable revenue bonds due 2021, series 1999A, from Juniper Capital LP, according to an 8-K filing with the Securities and Exchange Commission.

The bonds were assumed as part of the Oct. 20 purchase of the lease of a 1,064 megawatt natural gas-fired combined cycle generating facility at Plant Daniel from Juniper Capital.

The purchase price was roughly $355 million, including $85 million in cash as well as the debt assumption.

Based on interest rates as of Oct. 20, the fair value of the assumed debt was about $346 million, the filing stated. That said, the generating facility will be reflected in financial statements at roughly $431 million.

The bond assumption and exchange agreement included Mississippi Power, bondholders and issuer Mississippi Business Finance Corp., which originally sold $270 million of the bonds for the benefit of Juniper Capital.

Holders agreed to surrender their bonds in exchange for a like amount of replacement bonds with the same terms. These bonds may be redeemed in whole at par plus interest.

Mississippi Power, an electric subsidiary of the Southern Co., is based in Gulfport, Miss.

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