New York Power Authority Agrees to Sell $191 Million in Bonds Toward Completion of Debt Refinancing
Contact Connie M. Cullen 914-390-8196, 8165 connie.cullen@nypa.gov
October 10, 2001
FOR IMMEDIATE RELEASE
WHITE PLAINS—New York Power Authority (NYPA) Chairman and Chief Executive Officer Joseph J. Seymour announced Wednesday (Oct. 10) that the Power Authority has agreed to sell $191,360,000 of Series 2001 A Revenue Bonds.
This tax-exempt issue of serial bonds is priced to yield 2.15 percent for bonds due on Nov. 15, 2002, to 3.61 percent for the Nov. 15, 2008, maturity.
"The sale of these bonds at favorable interest rates is another sign of the success of our refinancing plan, carried out under Governor George E. Pataki’s leadership to strengthen New York’s economy," said Seymour. "This plan helps us continue the benefits of low-cost power and energy services for our customers."
NYPA expects to sign a bond purchase contract with the underwriters on Thursday.
The Power Authority will use the proceeds from the sale, along with other available NYPA funds, to refund the Nov. 15, 2001, tenders of a portion of its taxable Series 1998 B Revenue Bonds in the principal amount of $198,325,000.
The Series 2001 A Revenue Bonds are rated "AA" by Fitch, Inc., "Aa2" by Moody’s Investors Service and "AA-" by Standard and Poors’ Rating Group. Senior managers for the transaction are J.P. Morgan Securities Inc., Goldman, Sachs & Co. and UBS PaineWebber Inc.
Wednesday’s action brings the Power Authority closer to completing the refinancing of its senior debt, begun in 1998, which has resulted in debt service savings of more than $700 million, while also allowing more flexibility in paying down debt. As part of the refinancing, the Power Authority issued the taxable Series 1998 B Revenue Bonds.
Later this month, the Power Authority plans to take the last step in finalizing its debt refinancing with a forward sale of fixed-rate, tax-exempt Series 2002 A Revenue Bonds. The proceeds from the sale of the Series 2002 A Revenue Bonds will, along with other available NYPA funds, be used to refund the Nov. 15, 2002, tenders of the remainder of the Series 1998 B Revenue Bonds in the principal amount of $190,479,000.
The Power Authority is the nation’s largest state-owned power organization and one of New York’s leading electricity suppliers.
