Putable Automatic Rate Reset Securities (PARRS)

2013 Reset Calculation for TVC

The interest rate on the TVA 1998 Series D (NYSE: TVC) PARRS bonds (CUSIP number 880591300) will reset on June 1, 2013, if the sum of the average of the U.S. Treasury 30-Year CMT rate for the week ending April 26, 2013, plus 0.94%, is less than the current coupon rate of 4.06%. If the coupon resets, investors would be able to redeem their bonds at par value for a limited period of time. TVA will announce on May 1, 2013 whether the rate will be reset down.

2013 Reset Calculation for TVE

The interest rate on the TVA 1999 Series A (NYSE: TVE) PARRS bonds (CUSIP number 880591409) will reset on May 1, 2013, if the sum of the average of the U.S. Treasury 30-Year CMT rate for the week ending March 29, 2013, plus 0.84%, is less than the current coupon rate of 4.15%. If the coupon resets, investors would be able to redeem their bonds at par value for a limited period of time. TVA will announce on April 3 , 2013 whether the rate will be reset down.

Update: Important Legal Notices

TVA has issued legal notices to clarify the procedures that you should follow in order to exercise the put option in the event that a coupon rate reset notice is given and to clarify the procedures used to determine whether the coupon rate on the PARRS will be reset.

1998 Series D (TVC) Legal Notice
(PDF, 95 kb)

1999 Series A (TVE) Legal Notice
(PDF, 94 kb)

TVC is sometimes called: (TVA 28), (TN Vly PARRS)

TVE is sometimes called: (TVA 29), (TVA PARRS)

Putable Automatic Rate Reset Securities (PARRS) Reset History

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TVC (PARRS 28)

TVE (PARRS 29)