By Cristal Cody
Tupelo, Miss., May 7 – Tennessee Valley Authority priced $1 billion of 0.75% five-year global power bonds at a spread of 43 basis points over Treasuries on Wednesday, according to a market source and news release.
Initial talk on the bonds (Aaa/AA+/AAA) was in the Treasuries plus 50 bps to 55 bps area with guidance tightened to the 45 bps area, plus or minus 2 bps.
BofA Securities, Inc., Barclays, Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the bookrunners.
The offering was oversubscribed with more than $4 billion of interest.
Proceeds will be used to refinance existing debt or for general corporate purposes.
Tennessee Valley Authority is a Knoxville, Tenn.-based corporate agency of the United States of America that provides electricity and is responsible for managing the Tennessee River and its tributaries to provide flood control, navigation and land management.
| Issuer: | Tennessee Valley Authority
|
| Amount: | $1 billion
|
| Description: | Series A global power bonds
|
| Maturity: | May 15, 2025
|
| Bookrunners: | BofA Securities, Inc., Barclays, Morgan Stanley & Co. LLC and TD Securities (USA) LLC
|
| Coupon: | 0.75%
|
| Spread: | Treasuries plus 43 bps
|
| Trade date: | May 6
|
| Ratings: | Moody’s: Aaa
|
| S&P: AA+
|
| Fitch: AAA
|
| Price guidance: | Treasuries plus 45 bps area, plus or minus 2 bps; initial talk at Treasuries plus 50 bps-55 bps area
|
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