NYPA Trustees Authorize 2003A Bond Sale

Michael Saltzman

November 25, 2003


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 bond insurance.

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.