Santee Cooper board approves new mini-bond program
January 26, 2010
MONCKS CORNER, SC – January 25, 2010 – The Santee Cooper Board of Directors today approved an enhanced mini-bond program featuring two sales in 2010 and longer sale periods, to make it easier for South Carolinians to invest in the popular program.
The Santee Cooper Mini-Bond Program held annual sales from 1988-1993 and again from 2004-2008. Among other benefits, the sales create value to South Carolina by raising needed funding for Santee Cooper and keeping the interest income primarily in the state.
“The Santee Cooper Mini-Bond program is an easy way for all South Carolinians to invest in their state-owned utility, at increments as low as $200,” said Lonnie Carter, Santee Cooper president and chief executive officer. “Today’s board action increases access to the program, and it is in direct response to what investors have told us they wanted.”
Feedback from potential buyers addressed two issues: it is hard to remember when the sales are held, and they would like more opportunities to purchase mini-bonds. Historically Santee Cooper Mini-Bond sales have been held for about 3 weeks in the fall. Today’s board action authorizes two sales in 2010, in April and October. Each sale will last a full month. Interest rates will be set just prior to each sale, based on recommendations from Santee Cooper’s financial advisor, and the chief financial officer will authorize final sale amounts and percentage rates.
Santee Cooper Mini-Bonds are municipal bonds and the interest income is exempt from federal and South Carolina state tax under current law. The utility offers two types of mini-bonds, and the maximum per-individual purchase is $50,000:
• current interest bearing bonds, which pay interest semi-annually and are sold in $500 denominations
• capital appreciation bonds, which pay interest at maturity and are sold in $200 denominations
Santee Cooper is South Carolina’s state-owned electric and water utility, and the state’s largest power producer. The ultimate source of electricity for 2 million South Carolinians, Santee Cooper is dedicated to being the state’s leading resource for improving the quality of life for the people of South Carolina. For more information, visit www.santeecooper.com.
