The Long Island Power Authority has set up a securitization authority to sell $2.1 billion in the week of Dec. 9.
The Utility Debt Securitization Authority bond is expected to have a retail order day.
About $1.6 billion will be tax exempt bonds and about $485 million will be taxable bonds.
Goldman, Sachs & Co. is the senior manager for the tax exempt bonds and Morgan Stanley is the senior manager for the taxable bonds.
Fitch Ratings has rated the bonds AAA and Moody's Investors Service has rated them Aaa. Standard & Poor's has not yet released its report.
Maturities will range up to 2039.
The securitization is intended to lower electricity rates for its customers. The securitization should lower LIPA's debt load and its debt service costs to the benefit of LIPA's credit, ratings agency analysts have said.
Public Service Enterprise Group, Inc. is expected to take over LIPA operations at the start of the calendar year. The public LIPA is expected to continue as a holding company, allowing for continued tax-exempt bond issuance.
