NYPA Trustees Authorize Bond Sales to Complete Refinancing of Debt
Contact Connie Cullen 914-390-8196 connie.cullen@nypa.gov
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.
