Platte River Power Authority Completes Competitive Sale of Series JJ Bonds

FORT COLLINS, Colo. — On April 12, 2016, Platte River Power Authority (Platte River) sold $147 million of Series JJ Bonds using a competitive sale process. Proceeds will fund power production and transmission capital projects and generate $13.7 million in savings through debt refunding. A total of nine bids were received and JP Morgan Securities LLC submitted the winning bid of 2.19%, which is the lowest fixed rate bond issue in Platte River’s history. The bonds were sold at a $32 million premium, providing total bond proceeds of $179 million. The average life of Series JJ Bonds is 10 years.

"These bond proceeds will enable us to initiate and complete projects that are essential in ensuring the high level of service reliability our members expect," said Jackie Sargent, Platte River’s general manager and CEO. "We appreciate the full support of our board in pursuing these funds."

The project portfolio of the bond proceeds totals $60 million, with the remaining $119 million earmarked to advance refund a portion of the outstanding Series HH bonds. Historically low interest rates and Platte River’s strong credit quality provided the opportunity for the refunding which will reduce the average debt service by about $1.1 million per year through 2029. The closing date of the transaction is April 26, 2016.