TVA Achieves Historically Low Cost 30-Year Financing

Wednesday, December 19, 2012

The Tennessee Valley Authority announced Wednesday that it has priced $1 billion of new 30-year global power bonds with an interest rate of 3.50 percent – the lowest rate ever on a TVA 30-year institutional bond.

TVA was able to take advantage of a window of opportunity during a period of government fiscal negotiations and the holiday season to obtain low-cost financing. 

“The favorable interest rate environment and stable market allowed us to achieve the lowest interest rate on any TVA institutional financing of more than ten years,” Senior Vice President and Treasurer John Hoskins said. “The low-cost financing will support TVA’s vision to provide low cost, cleaner energy.”

TVA receives no funding from taxpayers, and pays its own way with revenues from power sales and power program financings. The proceeds from the sale will be used to reduce other debt, and for general corporate purposes.

The transaction benefitted from strong investor demand, with orders from a variety of institutional investors primarily in the United States. Morgan Stanley, Bank of America Merrill Lynch and Barclays Capital were joint book-running managers for the offering. 

“We were pleased to be able to meet investor demand for high-quality, long-term bonds, with an oversubscribed book of orders that supported the historically low interest rate,” said Mr. Hoskins.

The new bonds mature on Dec. 15, 2042, and are not subject to redemption prior to maturity. Interest will be paid semi-annually each Dec.15 and June 15. Application has been made to list the bonds on the New York Stock Exchange. The bonds will also be issued, maintained and transferred through the book-entry system of the Federal Reserve Banks. The bonds can be identified by the CUSIP number 880591EP3.




Applications Open For Eighth Annual ‘Will This Float?’ Competition

The Company Lab is seeking applications for its eighth annual ‘Will This Float?’ competition, which showcases up-and-coming startup ideas in southeast Tennessee. Prospective participants must submit their business concepts by Oct. 3 to enter into consideration.   The competition will take place Oct. 16 from 6-9 p.m. at River Place. Tickets cost $5 in advance or $7 at the ... (click for more)

Goodwill Program Is Focus Of ‘National Employ Older Americans Week’

The week of Sept. 25-Sept. 29 is “National Employ Older Americans Week.”  Led by the U.S. Department of Labor, the week aims to increase awareness of the older employee segment of the workforce and to develop strategies to tap into the potential held by experienced workers. It also showcases the Senior Community Service Employment Program (SCSEP) which provides on-the-job paid ... (click for more)

Defense Will Not Get Federal Witness In Trial Of Truck Driver Charged In Wreck That Killed 6 People

The federal government is resisting sending a lab technician from Oklahoma to Chattanooga for next week's trial of Benjamin Brewer, who is charged in the wreck at Ooltewah that claimed six lives. Mike Little of the public defender's office said the defense should be entitled to have a live witness, but he also said he did not want the trial delayed again. A jury was selected ... (click for more)

Charles Vaughn, 72, Was Victim In Lookout Valley Fire On Sunday

The victim in Sunday's fatal fire at 1218 Judys Lane in Lookout Valley has been identified as Charles Vaughn. He was 72.   Details on the incident are still being obtained, but Mr. Vaughn was reportedly in the attached garage around  3 p.m. on  Sunday afternoon working on a lawnmower when the fire started. His wife and daughter were in the house ... (click for more)

Tired Of Property Tax Increases

Why is it every time the city of Chattanooga and Hamilton County want to raise money they have to punish the homeowners?  I'm sick of the few paying for the many.   If you want to be fair, I would not complain on a 1/2 cent local sales tax raise since everyone would have to contribute their fair share.  Or how about a wheel tax which would get everyone who owns ... (click for more)

Roy Exum: Third Son Takes His Life

Steven Ferrin, described by his parents as “a handsome, bubbly and witty young man,” was the victim of what is called “a sectarian attack” in recent weeks near his home in north Belfast (Ireland) and last weekend was found dead after the 31-year-old father of a 7-year-old girl had taken his own life. Compounding the tragedy is the horrific news that Steven’s other two brothers and ... (click for more)