TVA Issues New Bonds

The Tennessee Valley Authority priced $1.25 billion of new 30-year maturity global power bonds with an interest rate of 5.25%.

The offering represents TVA’s first offering of senior unsecured 30-year bonds since 2022, and the largest offering of new bonds since 2011.  Proceeds of the offering will be used to support TVA’s capital investments and help refinance maturing debt.

Barclays, Bank of Amercia Securities, JP Morgan, and Morgan Stanley, served as joint book-running managers for the transaction, which attracted interest from a wide variety of domestic and global institutions.

The new bonds will mature on February 1, 2055, and are not subject to redemption prior to maturity. Interest will be paid semi-annually each February 1st and August 1st.

The Tennessee Valley Authority is the nation’s largest public power supplier, delivering energy to more than 10 million people across seven southeastern states.