FOR IMMEDIATE RELEASELocal Government Commission Approves NCEMPA Bond Sale
Bonds will refinance $485 million of debt following asset acquisition
RALEIGH—State Treasurer Janet Cowell announced today that the Local Government Commission (LGC) has approved the sale of $550 million in defeasance bonds by the North Carolina Eastern Municipal Power Agency (NCEMPA). The move comes following the $1.2-billion acquisition of asset shares from NCEMPA by Duke Energy Progress.
The amount of debt issued is the minimum amount needed to fund an escrow account that will retire all of NCEMPA’s existing bonds, after applying sales proceeds and the agency’s available funds which will also be used to fund the escrow account. Bond issuance and closing of the asset sale transaction are expected for July 1st.
“We are encouraged to see the recent efforts by NCEMPA to lower the debt burden on its 32 members,” said Treasurer Cowell, who chairs the LGC. “By providing more cost-competitive power, it should reduce the economic obstacles that face these cities and towns.”
The proposed purchase by Duke Energy Progress would significantly lower the NCEMPA’s debt load from $1.95 billion to $486 million; immediately lowering wholesale electrical costs up to 18% for all 32 members. The $550 million authorized provides for any potential changes in internal funds available and changes in capital market conditions.
The Department of State Treasurer’s State and Local Government Finance Division handles the sale and delivery of all State and local debt and monitors the repayment of State and local government debt. More information can be found at http://www.nctreasurer.com/slg