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Santee Cooper approves 2015 ABCD bond sale



02/13/2015


MONCKS CORNER, S.C. — The Santee Cooper Board of Directors approved the sale of $1.1 billion in revenue obligation bonds during a special board meeting today.

Nearly half of the amount was for refunding bonds to refinance a portion of Santee Cooper's debt. The refunding produced net present value savings of $58.8 million over the life of the bonds. The new money will be used for capital projects, primarily Santee Cooper's share in the ongoing construction of additional units at V.C. Summer Nuclear Station.

Specifically, the board approved the sale of $599 million in tax-exempt Series A, $64.9 million in tax-exempt Series B, $270.2 million in tax-exempt Series C and $169.7 million in Taxable Series D bonds.  The all-in true interest rate was 4.1 percent.

"Although the market was somewhat volatile this week, we saw strong investor interest and were able to upsize the new-money portion of the deal by about $100 million," said Jeffrey Armfield, Santee Cooper senior vice president and CFO.

The issue drew a rating of A+ from Fitch, AA- from Standard & Poor's and A1 from Moody's, which noted "Santee Cooper has an established sound financial record". All three rating agencies issued Santee Cooper a stable outlook and reaffirmed long-term debt ratings.

Maturities for the 2015 ABCD issue range from 2016 through 2055. The term "tax exempt" means exempt from federal and South Carolina income taxes for South Carolina residents under current law. The Official Statement for these bonds is available by contacting Santee Cooper Bondholder Relations at 1-877-246-3338. It is also posted at www.santeecooper.com/investorrelations.

Senior manager on the issue was Barclays, with Bank of America Merrill Lynch serving as co-senior manager. Co-managers were Goldman Sachs & Co., Morgan Stanley, J.P. Morgan, US Bancorp and Wells Fargo Securities.

Santee Cooper is South Carolina's largest power provider, 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