Southern California Public Power gets consents for gas bond amendments

By Toni Weeks

San Luis Obispo, Calif., Sept. 16 - Southern California Public Power Authority said it received consents representing a majority in principal amount of its gas project revenue bonds (Project No. 1), series 2007A and series 2007B, by the consent solicitation expiration, which was 5 p.m. ET on Sept. 13.

The company said in a press release that it will enter into amendments upon satisfaction of some conditions, including the payment of a cash consent fee to holders of the bonds who provided a valid consent by the expiration date and ratings of at least A3 from Moody's Investors Service and A- from Fitch Ratings.

As previously reported, the authority failed to receive consents from the holders of a majority of the outstanding bonds by the original expiration date, 5 p.m. ET on Sept. 23, and extended the offer to allow holders more time to participate in the solicitation. At that time, the authority also offered to pay a cash fee to consenting holders. Holders needed to be of record as of 5 p.m. ET on July 26.

For each $1,000 principal amount, the consent fee is $2.50 for bonds due Nov. 1, 2014, $5.00 for bonds due Nov. 1, 2015, $7.50 for bonds due Nov. 1, 2016, $10.00 for bonds due Nov. 1, 2017 and $10.00 for bonds due after that.

No consent fee will be paid for series 2007A bonds due Nov. 1, 2013.

Wells Fargo Securities, LLC (866 309-6316 or collect 704 410-4760) was the solicitation agent. D.F. King & Co., Inc. (800 431-9645, collect at 212 269-5550 or by email at scppa@dfking.com) was the information agent and tabulation agent for the consent solicitation.

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