Santee Cooper announces bond sale

MONCKS CORNER — Santee Cooper is offering $418,555,000 in refunding and new money bonds, according to a press release from the state-owned utility.

The issue includes $39,420,000 tax-exempt refunding Series D bonds, $279,135,000 2009 tax-exempt Series E bonds, and $100,000,000 2009 taxable Series F bonds. For the tax-exempt bonds, interest earned on the bonds is excludable from gross income for federal and South Carolina state income tax purposes under current law.

Bonds are to be sold to retail markets Wednesday and institutionally Thursday. Maturities range from 2011 through 2040. The Preliminary Official Statement for these bonds is available by contacting any of the firms listed below or Santee Cooper Bondholder Relations at (877) 246-3338.

The issue drew strong ratings, including an AA from Fitch Ratings, an AA- from Standard & Poor’s, and an Aa2 from Moody’s Investment Service. All rating agencies reaffirmed strong long-term ratings for the utility as well, according to the release.

“The long-term rating takes into consideration Santee Cooper’s strong management, competitive cost structure, and well-established record of stable finances including sound debt service coverage margins and internal liquidity,” Moody’s said.

Proceeds are for extraordinary working capital for a recent judgment regarding the U.S. Army Corps of Engineers’ Cooper River Rediversion Project, capital needs associated with pre-construction activities for Santee Cooper’s expansion of the V.C. Summer Nuclear Generating Station with SCE&G, and to refinance a portion of the utility’s outstanding debt.

Lead underwriter for this transaction is Goldman Sachs & Co. The underwriting team also includes Citigroup Global Markets Inc., Merrill Lynch & Co., and Morgan Stanley & Co.

Santee Cooper is the state’s largest power producer, supplying electricity to more than 163,000 retail customers in Berkeley, Georgetown, and Horry counties, as well as to 31 large industrial facilities, the cities of Bamberg and Georgetown, and the Charleston Air Force Base.

Santee Cooper also generates the power distributed by the state’s 20 electric cooperatives to more than 700,000 customers in all 46 counties. About 2 million South Carolinians receive their power directly or indirectly from Santee Cooper. The utility also provides water to 137,000 consumers in Berkeley and Dorchester counties, and the town of Santee.

For more information, visit http://www.santeecooper.com online.