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.



Study Shows 60 Percent Of Low-Income Tennesseans Face Civil Legal Problems

A study commissioned by the Tennessee Supreme Court Access to Justice Commission and the Tennessee Alliance for Legal Services with the support of the Tennessee Bar Association has found that more than 60 percent of vulnerable Tennesseans face a significant civil legal need. The goal of the study was to examine the effectiveness of delivering legal assistance to those in need. ... (click for more)

The Dixie Group Reports Formation Of Masland Hospitality

The Dixie Group announced the formation of Masland Hospitality, a new business will be led by Elizabeth Moore, vice president of Masland Hospitality. With Dixie’s recent acquisition of the assets of Burtco, LLC, a comprehensive offering of products will be available from Masland for the hospitality market. The product portfolio will include large scale public space patterns utilizing ... (click for more)

Kiser Takes Witness Stand For First Time; Says He Did Not Kill Deputy Donald Bond

Marlon Duane Kiser took the witness stand at his post-conviction hearing on Tuesday to declare that he did not kill Deputy Donald Bond, who was gunned down at a produce stand in East Brainerd 13 years ago. Kiser had not opted to go on the stand when he was convicted by a Nashville jury and given the death penalty in 2003. He said he believes it was Mike Chattin, the man he ... (click for more)

Courtney Godwin, 25, Was Victim In Monday Night Fire In Hixson

Chattanooga firefighters battled a fully-involved structure fire in Hixson Monday night, and the incident involved at least one fatality.  Dr. Steve Cogswell with the Hamilton County Medical Examiner’s Office identified the victim as Courtney D. Godwin, 25. Dr. Cogswell said Ms. Godwin died from smoke inhalation.   The first call to 911 Communications was received ... (click for more)

Chattanooga State Faculty Has No Business Being Involved In Hiring Decisions

This letter will hopefully bring some clarity to the recent situation created by the faculty of Chattanooga State Community College. It is based upon my tenure as a member of the faculty at Chattanooga State Technical Institute, the transformation to Chattanooga State Community College, and my service as the financial and administrative officer at Chattanooga State until my retirement ... (click for more)

Roy Exum: A Grand Thanksgiving Feast

I’m not really sure how it all came about but a few days before Thanksgiving last year, what was usually a crowded table had dwindled down to just Mother, Aunt Martha and me. Just the idea of getting dressed up made both of them tired, which happens when you are 89 and 87, respectively, and the thought of preparing the traditional feast brought only further groans so I announced ... (click for more)