PHOENIX — The Alaska Industrial Development and Export Authority is going to sell $67 million of bonds to refund debt it used to purchase a hydroelectric plant from the U.S. Department of Energy.
The bonds, rated Baa2 by Moody's Investors Service, will be used to refund an outstanding 1998 issuance. They will be underwritten by Citigroup and Goldman, Sachs & Co. The 1998 bonds were first issued to purchase the Snettisham hydroelectric project from the DOE.
That project was built by the Army Corps of Engineers in the 1970s, and is located not far from Juneau.
The bonds are secured by the revenues of the project, and are not general obligations of Alaska. All of the project's electric output is purchased by contractual agreement.
Public Financial Management will be financial advisor on the deal.
