Sale of Stanton Project Bonds Completed, FMPA Prepares for All-Requirements Issue
ORLANDO, Fla., Nov. 6, 2008 – Florida Municipal Power Agency (FMPA) completed the sale of $37.9 million of Stanton Project fixed-rate bonds (Series 2008) on Oct. 30, and the Agency is preparing to close on $275 million of All-Requirements Project variable-rate bonds. Both issuances are part of the Agency’s plan to restructure its $1.3 billion debt portfolio to increase the percentage of fixed-rate debt and eliminate the use of auction-rate securities.
“Despite today’s challenging financial market, FMPA is pleased to continue moving forward with our debt restructuring plan,” said FMPA Interim General Manager Nicholas Guarriello. “Completing the debt restructuring will serve the best interests of both investors and ratepayers.”
FMPA’s Stanton Project is a 14.8% ownership interest in Stanton Unit 1, a 425 megawatt coal-fired power plant. The $37.9 million of fixed-rate bonds sold by the project will refinance existing debt. The transaction is scheduled to close Nov. 12.
FMPA’s largest power supply project, All-Requirements, provides all the wholesale power needs of 15 municipal electric utilities. FMPA is preparing to issue $275 million of variable-rate All-Requirements Project bonds to refinance existing debt, including elimination of the project’s remaining auction-rate securities. Closing is scheduled for Nov. 20. FMPA closed Sept. 17 on a $584 million issue of All-Requirements bonds, which were used to refinance existing project debt and finance new power supply projects.
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.