TVA PRICES $1B OF NEW FIVE-YEAR GLOBAL POWER BONDS

KNOXVILLE, Tenn., March 27 -- The Tennessee Valley Authority issued the following press release:

The Tennessee Valley Authority priced $1 billion of new 5-year maturity global power bonds today, with an interest rate of 3.875%. This is TVA's first bond offering with a 5-year maturity since 2020.

The bonds attracted interest from a wide variety of domestic and global institutions, including official institutions, state and local governments, pension funds, money managers and insurance companies. Barclays Capital, BofA Securities, Morgan Stanley & Co, and RBC Capital Markets served as joint book-running managers for the transaction.

"The team was pleased to execute this opportunistic transaction for TVA which was led by strong demand," said TVA's Treasurer and Chief Risk Officer, Tammy Wilson. "As one of the nation's largest electric providers, now in our 90th year of operation, it is clear investors are attracted to TVA's strength and stability."

The new bonds will mature on March 15, 2028, and are not subject to redemption prior to maturity. Interest will be paid semi-annually each March 15 and September 15. Application has been made to list the bonds on the New York Stock Exchange.

TVA plans to use the proceeds to pay down other debt and for general corporate purposes. The transaction will not, in and of itself, materially change TVA's debt balance, which remains at the lowest level in 30 years. TVA's business plan calls for debt to increase in fiscal year 2023, and in the coming years, as TVA continues to invest in its power system.

"The 5-year tenor fits well in TVA's maturities profile, and we felt that reducing our exposure to the short-term debt markets was prudent in the current environment," added Wilson. "This week's offering will help TVA meet our capital needs this year, while locking in an interest rate that generates savings and provides more stability as the interest rate environment continues to evolve."

The bonds will be issued, maintained, and transferred through the book-entry system of the Federal Reserve Banks. Transactions may be cleared and settled by international participants through Clearstream and Euroclear. The bonds can be identified by the CUSIP number 880591EZ1 (ISIN number US880591EZ13).

The Tennessee Valley Authority is the nation's largest public power supplier, delivering energy to 10 million people across seven southeastern states. TVA was established 90 years ago to serve this region and the nation by developing innovative solutions to solve complex challenges. TVA's unique mission focuses on energy, environmental stewardship, and economic development. With one of the largest, most diverse, and cleanest energy systems - including nuclear, hydro, solar, gas, and advanced technologies - TVA is a leader in our nation's drive toward a clean energy future.

TVA is a corporate agency of the United States, receiving no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation. For any query with respect to this article or any other content requirement, please contact Editor at contentservices@htlive.com