Santee Cooper approves $500M bond sale
The Santee Cooper Board of Directors approved the sale of $506,765,000 in revenue obligation bonds during a special board meeting last week, successfully completing a $1.8 billion financing package that began with a $1.34 billion sale in August.
The 2013 Series E includes $252,600,000 in tax-exempt bonds with a maturity of Dec. 1, 2048 and $254,165,000 in tax-exempt bonds maturing Dec. 1, 2053.
The term “tax exempt” means exempt from federal and South Carolina income taxes for South Carolina residents under current law.
“This bond sale finishes what we started back in August, which was to sell around $1.75 billion in bonds with an emphasis on longer-term maturities. The long-term market weakened just prior to our August sale, and so we chose to hold off on our 35- and 40-year bonds,” said Jeff Armfield, Santee Cooper senior vice president and chief financial officer. “We’ve been watching for better market conditions, and I’m pleased we could respond so quickly and achieve our financing targets.”
Santee Cooper set two goals with its 2013 bond issues: refinancing existing debt out over a longer time frame to better match the life of its assets, and financing capital projects, primarily Santee Cooper’s share of construction costs for two new nuclear power units at V.C. Summer Nuclear Station.
The all-in true interest rate for the series is 5.34 percent. The issue drew ratings of AA- from Fitch Ratings and Standard & Poor’s, and an A1 from Moody’s Investment Service. BofA Merrill Lynch handled the transaction. The Final Official Statement for these bonds will be available by contacting Santee Cooper Bondholder Relations at 1-877-246-3338. It will also be posted at
Santee Cooper is South Carolina’s largest power producer, the largest Green Power generator and the ultimate source of electricity for 2 million people across the state. Through its low-cost, reliable and environmentally responsible electricity and water services, and through innovative partnerships and initiatives that attract and retain industry and jobs, Santee Cooper powers South Carolina. To learn more, visit www.santeecooper.com.