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 Chamber Presents Calendar Of Events For Oct. 24-28

MON/24 2016  Want to Bid on a Contract? Get the Right Certification 9 a.m. –  Noon INCubator: 100 Cherokee Blvd. Part of Chattanooga Minority Enterprise Development Week, this event is geared toward businesses owned by minorities, women, veterans, service-disabled veterans, and other small business owners.  ... (click for more)

Report Highlights Effect Of Pro Bono Legal Services

The Tennessee Supreme Court’s Access to Justice Commission’s released annual report shows Tennessee attorneys are donating more than 500,000 hours of their time annually worth more than $100 million.  For the calendar year 2014, nearly half of all attorneys reported doing some kind of pro bono work. The report shows 7,615 attorneys practicing in Tennessee provided 568,170 ... (click for more)

Mayor Berke, Lacie Stone Were At Swanky New York City Hotel While Bobby Stone Was Plying The River

Mayor Andy Berke's top advisor Lacie Stone accompanied him on a trip to New York City on April 12-13 and they ended up at a swanky spot where Ms. Stone's husband, Bobby, had taken her before. They sat at the Stones' favorite table.   Bobby Stone, who has accused his wife of having an affair with the mayor, has said that Lacie Stone told him that she and the mayor kissed ... (click for more)

Fire Displaces Family Of 7; Blaze Ruled Accidental

No injuries were reported in connection with a house fire on Saturday afternoon that displaced a family of seven. The Chattanooga Fire Department received the alarm at 4:11 p.m. and responded to 3308 Dodson Ave. with five fire companies. Captain Wadie Suttles with Engine 4 said heavy fire was showing when the first firefighters arrived on the scene. As additional firefighters ... (click for more)

Please, No Short Term Vacation Rentals In My Neighborhood

Approval of the short term vacation rental item on the City Council agenda for Tuesday  will be the next step toward commercializing our residential properties and communities to benefit those more interested in making money than preserving an old, well-established, rich community of like-minded families.    Anything requiring a business license is ... (click for more)

Roy Exum: Kelly Could Win It

I am neither a sleuth nor an odds maker but I’d say there is about a one-in-three chance that Interim Hamilton County Department of Education Superintendent Kirk Kelly could become the permanent superintendent of our public schools next Thursday. I am assured something squirrelly is happening on our newly-seated school board. It has been seven months since the last superintendent ... (click for more)