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.



Chattanooga Area Labor Council To Host Workers Memorial Day Event

The Chattanooga Area Labor Council will host a Workers Memorial Day Event on Monday, April 28, to remember all workers who have suffered and died on the job and to renew efforts for safe workplaces.    This is a worldwide campaign, sponsored by the AFL-CIO, to generate awareness and support of workers’ rights to "safe, healthy and respectful work environments."   ... (click for more)

Hicks Speaker For Walker Chamber's Monthly Membership Luncheon

The University of Georgia’s Small Business Development Center will be highlighted by keynote speaker Kinsey Hicks, program coordinator, during the Walker County Chamber of Commerce’s April Membership Luncheon which will take place on Tuesday from 11:30 a.m. to 1:30 p.m. at the Walker County Civic Center, 10052 N Hwy 27, Rock Spring, GA.    The Mission of the ... (click for more)

Man Shot On Cannon Avenue Early Saturday Morning

A man was shot early Saturday morning on Cannon Avenue. At approximately 5:30 a.m., Chattanooga Police responded to 2300 Cannon Ave. for shots fired.  Shortly after receiving the call, officers learned that a victim arrived at a local hospital.  The victim suffered a gunshot wound to the right leg and is undergoing treatment. The injury is not considered to be life-threatening.  ... (click for more)

Child Playing With Cigarette Lighter Starts $25,000 Mobile Home Fire

A child playing with a cigarette lighter started a mobile home fire on Saturday morning. At 9 a.m., the Chattanooga Fire Department responded to a mobile home fire at 6561 Cassie Lane. It took four fire companies about 10 minutes to get the fire under control. The fire was contained to one bedroom. No injuries were reported. Damage to the home is around $25,000. (click for more)

When The City Was Silent - And Response

I don't know how to say this without getting my head handed back to me on a platter as is often the usual case. But at least I no longer receive the hateful (even threatening) emails and insults I became accustomed to. So I'll just bite and say it: I honestly don't see anything expressed by the NSM that hasn't been said locally on some level at one time or another, and ... (click for more)

Roy Exum: God Could Use You…

In the spring of 1968, this just before pro golfer Billy Casper would win six tournaments that year and be the leading money winner on the tour, the wildly-popular “Buffalo Bill” was in Japan playing some off-season tournaments. He was asked if he would like to visit some American soldiers who had been seriously wounded and Casper, ever the gentleman, said of course. As he melted ... (click for more)