NYPA Approves Issuance Of Up To $220 Million In Revenue Bonds To Support Refunding Opportunities And Upgrade Of Hydroelectric Pump-Generating Facility
October 27, 2010
FOR IMMEDIATE RELEASE
LEWISTON—New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel today announced NYPA’s intention to issue one or more series of 2010 Revenue Bonds.
The pending bond sale, authorized yesterday by the NYPA Board of Trustees, will be for an aggregate principal amount not to exceed $220 million. The proceeds will be used to (i) refund up to $77.215 million of the Authority’s Series 2000 A Revenue bonds; (ii) refund up to $41.72 million of the Authority’s Series 2002 A Revenue bonds; (iii) fund up to $80 million in construction costs for a Life Extension and Modernization Program at the Niagara Power Project’s Lewiston Pump-Generating Plant; and (iv) finance capitalized interest and cost of issuance of the new bonds.
Implementation of any refunding or new money issuance will depend upon market conditions and other factors.
“The new bond sale will help us obtain financing cost savings for major capital projects that we’ve undertaken on behalf of our customers, and help to fund a major planned overhaul of our Lewiston Pump-Generating Plant at the Niagara Power Project,” Kessel said.
While the 2010 bonds have not yet been rated, current ratings assigned to NYPA are Aa2 by Moody’s Investors Service, AA- by Standard & Poor’s and AA by Fitch Ratings. All three ratings organizations maintain a stable outlook.
Hawkins Delafield & Wood LLP will serve as the Power Authority’s bond counsel and Public Financial Management, Inc., as its financial advisor. Underwriters will be selected from a prequalified pool of senior managers, co-managers and selling group members that were approved by the NYPA trustees at their regularly scheduled meeting last month.
Financial data and information provided in this announcement are for general informational purposes only, and are not intended for making any investment or financial decisions. NYPA shall not be liable for any errors or delays in the data or information.
■ The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■ NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ■ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ■For more information, www.nypa.gov.