Santee Cooper Board Approves 2014 Series AB Bond Sale
June 16, 2014
MONCKS CORNER, SC –The Santee Cooper Board of Directors approved the sale of $642,275,000 in revenue obligation bonds during a special board meeting today.
The issue included $600,000,000 in tax-exempt Series A and $42,275,000 in tax-exempt Refunding Series B bonds. The term “tax-exempt” means exempt from federal and South Carolina income taxes for South Carolina residents under current law.
The all-in true interest rate is 4.896 percent and the bonds mature from 2031 through 2054. The new money will be used primarily to help finance Santee Cooper’s share of costs to build two new nuclear power units at V.C. Summer Nuclear Station and to refund a portion of existing debt.
“We went to market targeting a little smaller sale. Investor response was strong, and interest rates were relatively low, and so we were able to increase the sale and lock down another significant amount of future funding needs at long-term yields ranging from 4 to 5 percent,” said Jeff Armfield, Santee Cooper senior vice president and CFO.
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.
The issue drew ratings of AA- from Standard & Poor’s, A1 from Moody’s and A+ from Fitch. Barclays was senior manager on the issue, with Bank of America Merrill Lynch serving as co-senior manager. Co-managers were Goldman Sachs & Co., Morgan Stanley, J.P. Morgan, US Bancorp and Wells Fargo Securities.
Santee Cooper is South Carolina’s largest power producer, 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.
