Tri-State gives early results for oversubscribed tender offer

By Mary-Katherine Stinson

Lexington, Ky., July 27 – Tri-State Generation and Transmission Association, Inc. announced early results in its capped cash tender offer for up to $100 million principal amount from three debt securities, according to a press release Wednesday.

As previously reported, the non-profit cooperative was offering to purchase from the following bonds, listed by acceptance priority levels:

• $228,002,000 outstanding 3.7% first mortgage bonds, series 2014E-1, due 2024 (Cusip: 89566EAG3) with pricing to be based on 3% Treasuries due June 30, 2024 plus 50 basis points;

• $250 million outstanding 4.7% first mortgage bonds, series 2014E-2, due 2024 (Cusip: 89566EAH1) with pricing to be based on 3.25% Treasuries due May 15, 2042 plus 190 bps; and

• $230.02 million outstanding 4.25% first mortgage bonds, series 2016A, due 2046 (Cusip: 89566EAK4) with pricing to be based on 2.25% Treasuries due Feb. 15, 2052 plus 190 bps.

The early deadline, which was also the withdrawal deadline, was 5 p.m. ET on July 26.

As of the early deadline, $134,254,000, or 58.88%, of the outstanding 3.7% first mortgage bonds, series 2014E-1, due 2024 were validly tendered.

Because the amount tendered exceeded the tender cap, the 2024 bonds will be accepted for purchase at a proration factor of 74.5%. Pricing will take place at 10 a.m. ET on July 27.

The company does not plan to accept all the bonds tendered, nor does it expect to accept for purchase any 2044 bonds or 2046 bonds.

All bonds tendered but not accepted will be returned to the holders.

For those bonds accepted for purchase, the total considerations will include a $30 early tender payment.

Interest up to the applicable settlement date will also be paid.

The early settlement date is expected to be July 28.

The offer expires at 11:59 p.m. ET on Aug. 9.

Final settlement was slated for Aug. 11.

Financing is coming from cash on hand and commercial paper.

The dealer managers for the offer are J.P. Morgan Securities LLC (866 834-4666, 212 834-3554) and U.S. Bancorp Investments, Inc. (800 479-3441, 646 651-4233).

D.F. King & Co., Inc. (866 828-6934, 212 269-5550, tristate@dfking.com) is the information and tender agent for the offer.

Tri-State Generation and Transmission Association is a Westminster, Colo.-based cooperative electricity supplier.

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