New York, Sept. 17 - The Tennessee Valley Authority said it priced an upsized $1 billion offering of 50-year global power bonds with a 4.625% coupon.
The issuer said the rate was the lowest it has ever achieved for a bond with a maturity of 30 years or more.
TVA said it chose the 50-year maturity because of strong demand for long-dated investments. It noted that issuing at 50 years cost approximately one eighth of a percentage point more than at 30 years.
The size was increased from a planned $500 million.
Bank of America, Merrill Lynch and Morgan Stanley were joint bookrunners.
Proceeds will be used to refinance debt and for other power system purposes.
TVA is a Knoxville, Tenn.-based provider of electricity.
| Issuer: | Tennessee Valley Authority
|
| Issue: | Global power bonds
|
| Amount: | $1 billion
|
| Maturity: | Sept. 15, 2060
|
| Coupon: | 4.625%
|
| Call: | Non-callable
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AAA
|
| Pricing date: | Sept. 17
|
| Bookrunners: | Bank of America, Merrill Lynch, Morgan Stanley
|
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