New York Power Authority trustees authorized issuance of revenue bonds totaling $675 million to help finance long-term projects at the agency’s 2,755.5-MW Niagara Power and 912-MW St. Lawrence-Franklin Delano Roosevelt hydroelectric projects.
ï¿½This bond sale builds on the power authority’s history of efficient and effective operating practices that have been consistently recognized in a very positive way by the rating agencies,ï¿½ NYPA Chairman Franklin McCullough Jr. said Sept. 25. ï¿½We expect significant interest in the bond sale as it helps in financing long-term projects at two of New York’s most important generating facilities.ï¿½
Trustees authorized the issuance of Series 2007 A, Series 2007 B, and Series 2007 C revenue bonds. The Series A and B bonds are exempt from federal taxes, while Series B bonds are taxable.
NYPA, the nation’s largest state-owned electric utility, authorized the Series 2007 A and 2007 B bonds up to an aggregated principal amount not to exceed $375 million. Proceeds from the bond sale will be used to finance the cost of the Niagara Power project (No. 2216) relicensing program and St. Lawrence-FDR Power (No. 2000) project relicensing and life extension modernization. (HNN 3/15/07) Proceeds also will be used to refund outstanding notes to finance Niagara relicensing and upgrade costs, and to fund the cost of issuing the bonds.
The 2007 C Bonds are authorized up to an aggregate principal amount of $300 million. The proceeds are to be used to refund up to $278 million of the Series 2002 A Revenue Bonds. Refunding of the 2002 A Revenue Bonds is market sensitive, NYPA said. The trustees also authorized a floating to fixed interest rate swap to lock in savings on the proposed 2007 C Bond issuance if NYPA, in consultation with its financial adviser, Public Financial Management, decides it is advantageous to do so.
Moody’s Investors Service, Standard &Poor’s, and Fitch Ratings all have assigned ratings to NYPA. Moody’s Investors raised its outlook on NYPA’s revenue bonds to positive from stable, while Standard &Poor’s and Fitch have maintained a stable outlook.