Salton Sea Funding redeeming 7.475% secured bonds

New York, Jan. 30 - Salton Sea Funding Corp. (Ba1/BB+) said that its board of directors has authorized the redemption of $136.383 million of the outstanding principal amount of its 7.475% senior secured series F bonds due 2018. The company has a total of $592 million of series B, C, E, and F senior secured bonds currently outstanding.

The bonds are to be redeemed on March 1 at a redemption price of par plus accrued and unpaid interest up to the redemption date.

Salton Sea Funding, an Omaha-based operator of geothermal energy facilities and an indirect, wholly owned subsidiary of CE Generation, LLC whose membership interests are in turn owned by MidAmerican Energy Holdings Co. and TransAlta USA Inc., said that the redemption is made at the option of Salton Sea Funding, as substantial completion of the Zinc Recovery Project owned by CalEnergy Minerals LLC has not occurred and CalEnergy Minerals has used reasonable efforts to cause the Zinc Recovery Project to achieve substantial completion on or prior to its guaranteed substantial completion date.

Salton Sea Funding said it expects to make a demand on its indirect corporate parent, MidAmerican Energy Holdings, for the amount remaining on MidAmerican's guarantee of the series F bonds in order to fund the redemption.

It said that upon such expected demand and payment under MidAmerican's guarantee, MidAmerican will have no further payment obligation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.