CHICAGO — The Nebraska Public Power District prices $217 million of revenue bonds Tuesday, marking its second financing this year to raise money for projects at its nuclear plant.
The district held retail sales Monday and wraps up Tuesday with institutional pricing.
Early pricing results Monday showed yields ranging from 0.36% on bonds maturing in 2014 to 3.49% on bonds with a 2033 maturity and 3.7% for a 2037 maturity.
The bulk of the issue is refunding debt, with about $35 million earmarked for new-money projects at the Cooper Nuclear Station, the utility’s only nuclear plant and one of two in Nebraska.
The deal is divided into two series, one for $114.6 million and one for $103 million. Bank of America Merrill Lynch is senior underwriter and Fulbright & Jaworski LLP is bond counsel.
The NPPD plans to spend another $40 million next year on the nuclear plant, and might boost spending to $168 million if the board and the federal Nuclear Regulatory Commission approve a $128 million initial phase to boost generating capacity at the station, according to bond documents.
District officials estimate an additional $25 million to $50 million as the preliminary cost for upgrades in the wake of the NRC’s investigation of the U.S. nuclear fleet after the 2011 Fukushima Dai-chi nuclear accident in Japan, according to bond documents.
Separately, the Internal Revenue Service has not yet taken any formal action on its decision last February that $10 million of the district’s Build America Bonds may not qualify for the 35% interest subsidy.
The utility estimates the cost of the subsidy loss at $260,000 a year, or $6.5 million over the life of the debt. “The district does not agree with the Service’s position and may contest any formal action taken by the Service,” bond documents said.
