By Cristal Cody
Chicago, Sept. 9 – Tennessee Valley Authority priced its $500 million offering of fixed-rate global power bonds due Sept. 15, 2052 (Aaa//AAA) with a 4.25% coupon on Thursday, a market source informed Prospect News.
The bonds priced with a spread of 100 basis points over Treasuries after talk in the 105 bps area.
The bonds will be non-callable.
Application will be made with the New York Stock Exchange to list the bonds.
The bonds may potentially be stripped into separate interest components and principal components starting in 2023.
BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities (USA) LLC are joint bookrunners.
Proceeds will be used to refinance existing debt or for other power system purposes.
TVA is a Knoxville, Tenn.-based provider of electricity.
| Issuer: | Tennessee Valley Authority
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| Amount: | $500 million
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| Issue: | Global power bonds
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| Maturity: | Sept. 15, 2052
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| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities (USA) LLC
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| Counsel to issuer: | In-house
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| Counsel to underwriters: | White & Case LLP
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| Coupon: | 4.25%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Non-callable
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| Trade date: | Sept. 8
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| Ratings: | Moody’s: Aaa
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| Fitch: AAA
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| Price talk: | Treasuries plus 105 bps area
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