Debt Financing

Platte River Completes Sale of Series JJ Bonds


Platte River issued its Series JJ Bonds in April 2016 using $119 million of the proceeds to advance refund a portion of the outstanding Series HH Bonds. The true interest cost of the Series JJ Bonds is 2.20 percent, and the net present value savings for the refunded bonds is $13.7 million. The remaining $60 million of the proceeds from the Series JJ Bonds will be used to reimburse and fund transmission and production capital projects. These bond proceeds will enable Platte River to initiate and complete projects that are essential in ensuring the high level of service reliability owner municipalities expect.
Platte River’s strong credit rating was a key to obtaining a low interest rate for the Series JJ Bonds. Prior to the sale, Standard and Poor’s Global Ratings and Fitch Ratings rated the bonds AA with a stable outlook. The agencies also affirmed Platte River’s AA ratings on all outstanding Power Revenue Bonds. Rationale behind the ratings included strong historical and projected debt service coverage, prudent risk management procedures, the creditworthiness of Platte River’s four owner municipalities, strength of the local economy, and a continued commitment of the board of directors to raise rates when necessary to sustain strong financial performance. The closing date of the transaction was April 26, 2016.