NYPA Trustees Authorize Bond Sales to Complete Refinancing of Debt
September 25, 2001
FOR IMMEDIATE RELEASE
ALBANY—New York Power Authority trustees Tuesday approved a new
supplemental bond resolution which authorized the issuance and sale of two
new series of tax-exempt bonds, Series 2001 A and Series 2002 A Revenue
Bonds in an aggregate amount not to exceed $525 million. Once the
transactions have been finalized, the Power Authority will have completed
its refinancing plan begun in 1998.
"Today’s actions represent the successful completion of the
Power Authority’s refinancing initiatives, begun under Governor George
E. Pataki, so we can continue to provide low-cost electricity and energy
savings programs to our customers throughout New York," said Joseph
J. Seymour, chairman and chief executive officer of the Power Authority.
Today's action took place at the Trustee meeting here.
In 1998, the Power Authority began the refinancing of all of its senior
debt, resulting in debt service savings of more than $700 million, while
also allowing more flexibility in its ability to pay down debt. As part of
this refunding, the Power Authority issued its Series 1998 B Revenue
Bonds, which are taxable.
The trustees today authorized the Authority to issue and sell fixed
rate, tax-exempt Series 2001 A Revenue Bonds, the proceeds of which, along
with other available Power Authority funds, will be used to refund the
Nov. 15, 2001 tenders of a portion of the Series 1998 B Revenue Bonds in
the principal amount of $198,325,000. Also, the trustees authorized the
Power Authority staff to possibly do a forward sale of fixed rate,
tax-exempt Series 2002 A Revenue Bonds, the proceeds of which, along with
other available Power Authority funds, will be used to refund the Nov. 15,
2002 tenders of the remainder of the Series 1998 B Revenue Bonds in the
principal amount of $276,865,000.
The Power Authority’s $200 million Series 2001 A Revenue Bonds
(tax-exempt) are rated "AA" by Fitch, "Aa2" by Moody's
and "AA-" by Standard and Poors. The bonds, with maturities
ranging from Nov. 15, 2002 to Nov. 15, 2008, are scheduled to price the
week of Oct. 8, 2001. Senior managers for the 2001 transaction are J. P.
Morgan Securities Inc., Goldman, Sachs & Co. and UBS PaineWebber Inc.
For the 2002 transaction, if viable, senior managers are Salomon Smith
Barney Inc., J. P. Morgan Securities, Inc., and Goldman Sachs & Co.
The Power Authority is the nation’s largest state-owned power
organization and is one of New York’s leading electricity suppliers.