TVA to Redeem Debt Securities
Jan. 14, 2004
On Feb. 18, 2004, the Tennessee Valley Authority will redeem all of its 2000 Series C, 7.50-percent and 2000 Series D, 7.65-percent Quarterly Income Tiered Securities (QUINTSSM).
The 2000 Series C bonds are identified by CUSIP number 880591DH2. TVA issued $25 million of the 7.5-percent bonds, which are due Feb. 18, 2015.
The 2000 Series D bonds are identified by CUSIP number 880591DJ8. TVA issued $25 million of the 7.65-percent bonds, which are due Feb. 18, 2020.
TVA plans to retire this debt using a portion of the proceeds from a power prepayment by Memphis Light, Gas and Water. Retiring the bonds will allow TVA to save approximately $1.2 million in interest expense per year.
The bonds will be redeemed at 100 percent of their par value. The redemption price and any accrued interest will be paid to eligible holders through the book-entry system of the Federal Reserve Banks.
TVA is a wholly owned federal corporation and the nation’s largest public power provider. Its power system is self-supporting through power revenues and proceeds from the issuance of debt. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
John Moulton, Knoxville (865-632-8048) or TVA News Bureau, Knoxville (865-632-6000)
