Old Dominion Electric sells $250 million 3.33% mortgage bonds due 2037

By Devika Patel

Knoxville, Tenn., July 6 – The week ended with just one private placement announced in Friday’s session: Glen Allen, Va., consumer-owned power supplier Old Dominion Electric Cooperative concluded a $250 million private placement of 3.33% first mortgage bonds due 2037. The deal was settled on Thursday and announced the following day.

Old Dominion issued $250 million of first mortgage bonds in a private placement, which concluded on July 6.

The bonds are due on Dec. 1, 2037 and accrue interest at an annual rate of 3.33%.

This was the first offering for the company in over two years.

In January 2015, the cooperative issued $332 million of first mortgage bonds in a private placement.

The 2015 bonds included $260 million of 4.46% first mortgage bonds, 2015 series A, due 2044 and $72 million of 4.56% first mortgage bonds, 2015 series B, due 2053.

More recently, in March of this year, the company entered into a $500 million five-year first amended and restated senior unsecured revolving credit agreement.

Borrowings bear interest at Libor plus a margin of 90 basis points to 150 bps, depending on Old Dominion’s credit ratings. There is a commitment fee of 5 bps to 30 bps, also depending on credit ratings. The initial margin is 100 bps, and the initial commitment fee is 10 bps.

The credit agreement matures on March 3, 2022 and replaces the company’s credit agreement dated March 12, 2014.

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