October 28, 2023

Energy Southeast achieves another milestone with second bond closing

In a follow-up to its first transaction, Energy Southeast has once again closed another successful prepaid bond issuance. The organization priced its second prepay bond on October 18, 2023, and closed the transaction on October 27, 2023. This bond issue, with a total par value of $608 million, represents a significant step forward in Energy Southeast’s ongoing commitment to economic and energy stability in the region.

The proceeds from this issue will be utilized to prepay the costs of acquiring electric energy for a 30-year term. This energy will subsequently be sold to a single project participant, the Alabama Municipal Electric Authority, under a Power Supply Contract. The Prepaid Energy Sales Agreement with Morgan Stanley is a cornerstone of the transaction and will ensure a steady and reliable supply of energy.

By opting to prepay for the energy, the project participant is projected to realize savings of $26 million between now and 2031; the initial term of this second bond issue. This is in addition to the $17 million saved during the initial period of the first bond issue, bringing the total savings to an impressive $43 million.

Energy Southeast is well-positioned to continue exploring opportunities that yield economic benefits for project participants, utilizing tax-exempt electricity prepayments as a strategic financial tool.  As Energy Southeast celebrates this latest achievement, we also look forward to the future, ready to embrace new opportunities and continue their legacy of innovation and economic stewardship in the energy sector.