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.



Georgia Ranked Sixth Nationally For Job Growth

The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) announced that  Georgia is ranked sixth nationally and third in the Southeast for top job growth. With the creation of over 79,300 new jobs in the past 12 months, Georgia represents a strong 2.0 percent annual growth rate, which is higher than the nation’s average of 1.8 percent. Georgia also had solid ... (click for more)

Tennessee's Unemployment Rate For August Increased To 7.4%

Tennessee Labor & Workforce Development Commissioner Burns Phillips announced the Tennessee preliminary unemployment rate for August was 7.4 percent, three tenths of one percentage point higher than the 7.1 July revised rate. The U.S. preliminary rate for August was 6.1 percent, down from 6.2 percent in July. Economic Summary • Over the past year, Tennessee's unemployment ... (click for more)

Man Charged With Killing 3-Year-Old Takes Own Life In County Jail

Justin Dale Bradley died in the Hamilton County jail Saturday morning. Notification was received from the Hamilton County 911 Center at   12:50 a.m. ,   regarding an inmate found unresponsive.   Jail personnel found the male inmate unresponsive in his cell and initiated C.P.R. while notifying Hamilton County Emergency Medical Services. ... (click for more)

Democratic Chairman Roy Herron Announces He Will Not Run For 2nd Term

Democratic Party Chairman Roy Herron announced Saturday at a meeting of the Tennessee Democratic Party State Executive Committee that he would not be seeking a second term as party chairman. “I have been blessed to serve as chairman these past two years, and I owe an enormous debt of gratitude to all of the executive committee members, party officials, staff members, and friends ... (click for more)

You’re Right With Lamar

One of Tennessee’s favorite sons, Davy Crockett, coined an oft-used phrase:  “Be always sure you’re right, then go ahead.” Being sure is quite important, but may be difficult in this election cycle. The Democratic nominee campaigning against Lamar Alexander is a man whose radio ads call for “change,” “fair” taxes and more jobs.  Sounds good, huh?   ... (click for more)

Roy Exum: The Saturday Funnies

Okay … here we go. A number of readers have complained that I haven’t shared any jokes that my friends send to my email address so on a weekend when our Volunteers and Mocs are idle, let’s laugh a little:   I was sitting in a bar one afternoon with an old friend knocking back a few beers when he said, "You know, if we're not careful we'll end up like those two old drunks ... (click for more)