Authorize 2003A Bond Sale
November 25, 2003
FOR IMMEDIATE RELEASE
NEW YORK—New York Power Authority (NYPA) Trustees
Tuesday approved issuance of up to $230 million of Series 2003A Revenue
Bonds in the form of federally taxable, fixed-rate obligations.
The new bonds are scheduled to be offered to
investors in early December. They’ll be paid off over a 25-year period,
beginning Nov. 15, 2008, and are expected to be covered by municipal
The proceeds of the bond sale will be used to
finance a portion of the relicensing costs of NYPA’s St.
Lawrence-Franklin D. Roosevelt Project, a 912,000-kilowatt hydroelectric
project in northern New York, and some of the costs of a life extension
and modernization program begun at the facility in 2002.
The Series 2003A Bonds will also be used to refund
Commercial Paper Series 3 Notes previously issued to finance relicensing
and modernization costs; the bonds will also fund capitalized interest,
as well as the cost of the 2003A bond issuance.
In October, the Federal Energy Regulatory
Commission (FERC) issued a new 50-year license for St. Lawrence-FDR,
following a comprehensive settlement agreement providing for community
enhancements and other benefits.
The life extension and modernization program
involves refurbishing the project’s 16 turbine generators, with the
effort scheduled to be completed in 2013.
A team of six underwriters led by Goldman, Sachs
and Co. will market the Series 2003A Bonds. The other co-managers of
the sale are UBS Financial Services, Citigroup, JPMorgan, Morgan Stanley
and Bear, Stearns & Co.
Copies of the Preliminary Official Statement, and
the final Official Statement when available, relating to the Series
2003A Bonds, are available from Goldman, Sachs and the other
co-managers. The offering of the Series A bonds is made solely by means
of the Preliminary Official Statement and the final Official Statement.