The Santee Cooper Board of Directors approved the sale of $163 million in variable rate revenue obligation bonds during a special telephonic board meeting today. The proceeds will be used to refund existing debt, and the transaction achieves projected debt service savings of $40 million over the next 16 years.
“Today’s transaction completes another financial milestone identified in Santee Cooper’s 2019 business forecast,” said Chief Financial Officer Pamela Williams, who noted strong investor interest in the offering. “This debt refunding is another key step supporting our commitment to hold customer prices stable for at least the next five years.”
The 2019A bond sale involved tax-exempt bonds with maturities from 2021 to 2036. The initial interest rate is 1.19%. The term “tax exempt” means exempt from federal and South Carolina income taxes for South Carolina residents under current law.
The 2019 A bonds are secured by a Letter of Credit issued by BofA Securities.
BofA Securities was senior manager on the issue, with Barclays and American Veterans Group acting as Co-Managers. American Veterans Group is a certified Service-Disabled Veteran Owned Small Business operating in the debt and equity market, and 25% of company earnings are reinvested back into military veteran causes. The Final Official Statement for these bonds will be available by contacting Santee Cooper Bondholder Relations at 1-877-246-3338. It will also be posted at www.santeecooper.com/investorrelations.
Santee Cooper is South Carolina's largest power provider, the largest Green Power generator and the ultimate source of electricity for 2 million people across the state. Through its low-cost, reliable and environmentally responsible electricity and water services, and through innovative partnerships and initiatives that attract and retain industry and jobs, Santee Cooper powers South Carolina. To learn more, visit www.santeecooper.com.
Source: Santee Cooper