TVA to Refinance Debt: The Tennessee Valley...

TVA to Refinance Debt: The Tennessee Valley Authority, operator of the nations’s largest electric power systems, said it will refinance $6.5 billion in debt to the federal Treasury by issuing bonds in the public market for the first time in 15 years. The agency expects to save $100 million a year in interest costs by refinancing. Of TVA’s total $18.1 billion in long-term debt, $16.7 billions is held by the Federal Financing Bank, an agency of the Treasury Department, and the average interest rate on $6.5 billion of the debt is 12,25%, according to William F. Malec, the TVA chief financial officer. Malec said the agency expected to pay about a 9% average interest rate on the newly issued debt.