Proceeds from the taxable bond sale will finance $100 million in nuclear fuel purchases and capital additions at the utility’s nuclear power plant
– By Linton Levy –
The Nebraska Public Power District plans to issue approximately $70 million of fixed-rate, tax-exempt and $100 million of fixed-rate, taxable general revenue bonds during the week of June 8, 2009.
A portion of the $70 million fixed-rate tax-exempt bonds may be designated as taxable “Build America Bonds,” under provisions of the American Recovery and Reinvestment Act of 2009. The interest on “Build America Bonds” is not excluded from gross income for purposes of federal income taxes.
Proceeds from the taxable bond sale will finance $100 million in nuclear fuel purchases and capital additions at the utility’s nuclear power plant, Cooper Nuclear Station. Of the tax exempt issue, more than $45 million will fund transmission line and substation improvements to support regular utility operations, future wind generation facilities, approximately $13 million will finance a portion of a statewide radio system to provide a communications network that will support NPPD’s line crews. The sale will also cover a deposit to the debt service reserve and pay financing costs.
It is currently anticipated that the tax-exempt bonds will be issued in $5,000 denominations, and the taxable bonds will be issued in $1,000 denominations.
NPPD has selected Morgan Stanley & Co., Inc. as its senior bond underwriter. Other national underwriting firms include Barclays Capital, Goldman, Sachs & Co., and J.P. Morgan. Local and regional firms of the underwriting team include Ameritas Investment Corp., D.A. Davidson & Co., Edward D. Jones & Co. L.P., First National Capital Markets, Inc., Piper Jaffray & Co., RBC Capital Markets, Inc., Ramirez & Co., Inc.; Smith Hayes Financial Services Corp., and Wells Fargo Advisors LLC (an affiliate of Wachovia Bank, N.A.).
An order period for retail investors is scheduled for June 8, with pricing for institutional investors on June 9. The majority of the bonds will be repaid over a 25-year period. Individuals interested in purchasing the bonds should contact their broker or financial advisor.
NPPD’s Preliminary Official Statement and the information contained therein is subject to completion, amendment or other change without any notice. The securities described therein may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall the Preliminary Official Statement constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction. A Preliminary Official Statement is available for review at http://www.nppd.com/About_Us/Financials/.
Always there when you need us, NPPD’s mission is to safely generate and deliver low-cost reliable energy and provide outstanding customer service. Working in partnership with the state’s rural public power districts, cooperatives and municipalities, NPPD helps serve an estimated 1 million Nebraskans with retail or wholesale electric power and energy-related products and services. For more information about NPPD visit www.nppd.com.