By Andrea Heisinger
Omaha, June 18 - Tennessee Valley Authority priced $500 million 5.5% 30-year global power bonds on Tuesday to yield Treasuries plus 75 basis points, according to a market source and a press release.
The notes (Aaa/AAA) are non-callable.
Bookrunners were Barclays Capital Inc. and Morgan Stanley & Co., Inc.
Co-managers were Banc of America Securities LLC, Deutsche Bank Securities Inc., Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc.
Attractive interest rates, which remain historically low, and calmer market conditions at the beginning of this week contributed to the success of the transaction, TVA senior vice president and treasurer John Hoskins said in the release.
"This financing will benefit TVA and its power customers by helping to control TVA's interest expense for years to come," he said.
Proceeds will be used to refinance existing debt.
The power company is based in Knoxville, Tenn.
| Issuer: | Tennessee Valley Authority
|
| Issue: | Global power bonds
|
| Amount: | $500 million
|
| Maturity: | June 15, 2038
|
| Bookrunners: | Barclays Capital Inc., Morgan Stanley & Co., Inc.
|
| Co-managers: | Banc of America Securities LLC, Deutsche Bank Securities Inc., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Coupon: | 5.5%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Non-callable
|
| Trade date: | June 17
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
