Nevada Power receives tenders for 92% of 10 7/8% notes

By Jennifer Chiou

New York, June 29 - Nevada Power Co. said it obtained tenders from holders of about $150 million or 92% of its $162.5 million of 10 7/8% general and refunding mortgage notes series E due 2009.

The tender ended at midnight ET on June 28.

As previously announced, by the consent deadline of 5 p.m. ET on June 14, the company had received tenders for 92% of the securities, enough to amend the securities' certificate.

Nevada Power executed an amendment to the officer's certificate which will go into effect when it buys the notes.

The Las Vegas-based electric utility announced the tender on June 1 and said it was soliciting consents to amend the officer's certificate for the notes to eliminate substantially all of the restrictive covenants and certain rights to redeem the notes at the option of the holders.

For each $1,000 principal amount of notes, Nevada Power will pay $1,068.45, the present value on the settlement date of the call price of $1,054.38 on the first call date of Oct. 15, 2006 plus all scheduled interest payments up to the first call date, discounted using the yield to maturity on the 2.5% U.S. Treasury Note due Sept. 30, 2006 on the second business day immediately preceding the expiration plus 50 basis points. Accrued interest up to the settlement date will be deducted from the total, which also includes a consent payment of $30.00 that will only be paid to holders who tendered with consents by the consent deadline.

Holders will also receive accrued interest up to but excluding the settlement date.

Nevada Power, a subsidiary of Sierra Pacific Resources, plans to fund the tender with an offer of new notes.

The tender is subject to completion of the new offering and the receipt of consents from holders of a majority of the notes.

Goldman, Sachs & Co. is dealer manager and solicitation agent (800 828-3182 or 212 902-3440) and Morrow & Co., Inc. is information agent (800 654-2468 or 203 658-9400).

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