New York Power
Authority Agrees to Sell $191 Million in Bonds Toward Completion of Debt
Connie M. Cullen
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
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,
"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
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
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
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.