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.



GDOL To Help Sustainable Corrugated Recruit In Dalton

The Georgia Department of Labor will help Sustainable Corrugated, a manufacturing company, recruit about 60 employees to work in Dalton.   The recruitment will be held on Thursday, Aug. 4 from 2-7 p.m. at the Northwest Georgia Trade and Convention Center located at 2211 Dug Gap Battle Road in Dalton. The employer will be recruiting forklift and machine operators, ... (click for more)

Dr. Austin Roberts Family And Implant Dentistry Has Open House

Dr. Roberts has relocated his practice to Ooltewah, where he and his team are providing care to their patients. Dr. Austin Roberts Family And Implant Dentistry will host an open house with ribbon cutting on Aug. 18 at 4 p.m. at 6107 Ooltewah Georgetown Road.  The Chattanooga Area Chamber of Commerce will coordinate the event.  Hours of operation are from 8 a.m.-5 ... (click for more)

Baylor School Tennis Coach Charged With Buying Meth In Whitfield County, Ga.

A Baylor School tennis coach has been arrested on charges of buying meth in Whitfield County, Ga. Philip Johnson, 51, of Ooltewah, was taken into custody on Thursday and charged with attempt or conspiracy to violate the Georgia Controlled Substance Act, possession of a firearm during the commission of a felony, and use of a communication facilities during drug transactions. ... (click for more)

Chattanooga Whiskey Company To Construct Large Distillery At Former Site Of Newton Chevrolet

The Chattanooga Whiskey Company has begun construction on a larger production distillery in the former Newton Chevrolet property at the corner of MLK Boulevard and Riverfront Parkway near the Tennessee River. Once fully operational, the Riverfront Parkway facility will be capable of producing upwards of 14 (53-gallon) barrels per day, making it one of the largest craft bourbon ... (click for more)

Judge Steelman Was Unfairly Criticized In Handling Of School Bus Driver Rape Case - And Response

We are blessed to have freedom of speech in our society, but I am always amazed at the number of folks who voice such strong antagonistic opinions about things without any apparent first-hand knowledge.   As any who wish to criticize the system should know, people get arrested and charged for criminal offenses every day.  The ultimate charge and penalty which results ... (click for more)

Roy Exum: Vote For Rhonda Thurman

After studying the Hamilton County School Board quite harshly during the last seven most-tumultuous months in its history, it is only proper that I share my belief that Rhonda is its Most Valuable Player. Four of the school board’s nine members are up for re-election, with Rhonda facing capable opponents in Jason Moses and Dr. Patti Skates in District 1, but let’s never forget that ... (click for more)