By Zaeem Shoaib
The South Carolina Public Service Authority is selling $900 million of bonds to pay for part of the costs of its capital improvement program and to refinance a portion of its debt.
The authority plans to issue two tranches of tax-exempt bonds and one series of taxable notes, according to a preliminary statement posted Tuesday on MuniOS.com. Interest rate and pricing information aren't yet available.
The authority, which provides electricity and water in the state, plans to issue $230.1 million in bonds for a capital improvement program that aims to replace coal-generated electricity with renewable energy and natural gas. The tax-exempt bonds mature between 2026 and 2054, while the taxable notes mature between 2026 and 2054.
Total costs of the program through 2026 are estimated to be about $1.9 billion, according to the statement.
The remaining $670 million of tax-exempt bonds, maturing between 2032 and 2054, will be used to refinance debt.
The authority had $1.85 billion in operating revenue last year, according to the statement.
Moody's Ratings has rated the bonds A3, while S&P Global Ratings and Fitch Ratings each assigned a rating of A-.
J.P. Morgan is serving as lead manager on the deal.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
07-17-24 1408ET
