The Tennessee Valley Authority priced $1.5 billion of new 10-year maturity global power bonds today, with an interest rate of 4.875 percent -- the agency’s largest bond transaction since 2011. This is TVA’s fourth offering of new bonds and other long-term financings in less than a year. Proceeds of today’s transaction will be used to support TVA’s capital investments and help refinance maturing debt.
“TVA is making some of the largest capital investments in our history to ensure the region has reliable, affordable energy to power American jobs,” said Tom Rice, TVA senior vice president and chief financial officer. “Today’s transaction, along with our recent offerings, are helping fund the generation assets that will ensure TVA continues to provide reliable, resilient energy today and for years to come.”
Morgan Stanley, Bank of America Securities, RBC Capital Markets and TD Securities, served as joint managers for today’s transaction.
“We were pleased to see continued strong demand for the TVA name with today’s transaction, which is the largest for TVA in over a decade,” said Brian Child, TVA vice president, treasurer and chief risk officer. “Today’s offering attracted interest from a wide variety of domestic and global accounts, allowing us to upsize the transaction to $1.5 billion.”
The new bonds will mature on May 15, 2035, and are not subject to redemption prior to maturity.
Interest will be paid semi-annually each Nov. 15 and May 15. An application has been made to list the bonds on the New York Stock Exchange.
The bonds will be issued, maintained and transferred through the book-entry system of the Federal Reserve Banks. Transactions may be cleared and settled by international participants through Clearstream and Euroclear. The bonds can be identified by the CUSIP number 880591FD9 (ISIN number US880591FD91).