FMPA Closes $424 Million Bond Transaction
Sale nets $63.7 million in gross savings for 13 All-Requirements Project cities
ORLANDO, Fla., April 8, 2016 – Florida Municipal Power Agency (FMPA) has closed on the sale of $424 million in municipal bonds for its All-Requirements Project to refinance existing project debt. The sale netted $63.7 million in gross savings, which was more than FMPA originally expected.
FMPA’s largest power supply project, All-Requirements, provides all the wholesale power needs of 13 municipal electric utilities. The savings will reduce future power costs for these cities.
The savings are approximately $1.7 million in 2016 increasing to $4.6 million in 2020 and for the most part, thereafter, until maturity. The final maturity date for the refunding bonds is the same as the original issues being refunded.
The bonds received strong credit ratings of A+ from Fitch Ratings and A2 from Moody’s Investors Service. In granting the high ratings, both rating agencies pointed to the steady improvements in the All-Requirements Project’s rate competitiveness and satisfactory financial performance. FMPA’s All-Requirements rates have decreased 30 percent since 2009, allowing a number of the cities it serves to maintain retail rates among the lowest in Florida.
The bonds were underwritten by Bank of America Merrill Lynch and Wells Fargo Securities in a negotiated sale.
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Florida Municipal Power Agency (FMPA) is a wholesale power company owned by 31 municipal electric utilities. FMPA provides economies of scale in power generation and related services to support community-owned electric utilities. The members of FMPA serve approximately two million Floridians.