Tennessee Valley Authority
TVA Prices $1 Billion of 10-Year Global Power Bonds
July 13, 2007
TVA has priced $1 billion of 10-year global power bonds at an interest rate of 5.50 percent.
The bonds will mature on July 18, 2017, and are not callable prior to maturity. Interest will be paid semi-annually, with the first interest payment in January 2008. The bonds were priced Thursday, July 12. Proceeds from the transaction will be used to refinance existing debt.
“Response from the investor community for the bonds was strong,” said TVA Interim Chief Financial Officer John Hoskins. “Distribution of the bonds was well diversified across the United States, Asia and Europe.”
TVA investors include asset managers, pension funds, insurance companies and government entities that have a need for highly rated securities.
“TVA has again responded quickly to take advantage of current market conditions,” said TVA Interim Vice President and Treasurer Tammy Wilson. “TVA had a funding need and was able to lock in a cost of money that is historically very attractive for 10-year financing.”
Lehman Brothers and Morgan Stanley are joint lead managers for the transaction. Co-managers include Banc of America Securities, Bear Stearns, Credit Suisse First Boston and Goldman Sachs. The bonds have been rated “Aaa” by Moody’s Investors Service and “AAA” by Standard and Poor’s and Fitch Ratings.
TVA is listing the bonds on the New York Stock Exchange and Luxembourg 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.
TVA is the nation’s largest public power provider and is completely self-financing. TVA provides power to large industries and 158 power distributors that serve approximately 8.7 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
Media Contact
TVA News Bureau, Knoxville, (865) 632-6000
Investor Contacts
TVA Investor Relations, Knoxville:
(888) 882-4975 (toll-free)
or
(888) 882-4967 (toll-free international)