FMPA Closes $584 Million Bond Transaction
ORLANDO, Fla., Sept. 18, 2008 – Florida Municipal Power Agency (FMPA) has closed on a $584 million bond transaction for its All-Requirements Project to finance new power supply projects and refinance existing project debt.
The issuance completed this week is a significant milestone in the Agency’s plan to restructure $1.3 billion of its debt portfolio with more fixed-rate debt and eliminate the use of auction-rate securities. Auction-rate securities refinanced by these bonds will be redeemed by Oct. 10, 2008.
FMPA’s largest power supply project, All-Requirements, provides all the wholesale power needs of 15 municipal electric utilities. All-Requirements issued $403 million of new debt to fund power supply projects, including the development of a new natural gas-fueled power plant. FMPA also refinanced $181 million of existing debt with this transaction.
This transaction is the first step in FMPA’s plan to restructure its outstanding debt. Other transactions are scheduled to close between late-September and late-October.
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Florida Municipal Power Agency (FMPA) is a wholesale power company owned by 30 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 2 million Floridians. FMPA’s members are Alachua, Bartow, Blountstown, Bushnell, Chattahoochee, Clewiston, Fort Meade, Fort Pierce, Gainesville, Green Cove Springs, Havana, Homestead, Jacksonville Beach, Key West, Kissimmee, Lake Worth, Lakeland, Leesburg, Moore Haven, Mount Dora, New Smyrna Beach, Newberry, Ocala, Orlando, Quincy, St. Cloud, Starke, Vero Beach, Wauchula and Williston. Additional information is available on the Internet at www.fmpa.com.