Tennessee Valley Authority
Putable Automatic Rate Reset Securities (PARRS)
Current Information
2008 Reset Calculation for TVE
The interest rate on the 1999 Series A ("TVE") PARRS bonds was reset to 5.174% on May 1, 2008. Approximately $102 million, or 25 percent, of $400 million previously outstanding were returned to TVA in conjunction with the reset. Approximately $298 million of the bonds remain outstanding.
2008 Reset Calculation for TVC
The interest rate on the 1998 Series D ("TVC") PARRS bonds will be reset from 5.49% to 5.46% percent on June 1, 2008. In conjunction with the pending reset, investors have the option of retaining the bonds with the new rate or requesting repayment at par value ($25 per bond). Investors who wish to return their bonds must contact the financial institution which holds the bonds to request repayment and authorize arrangements to be made on their behalf. Repayment arrangements must be completed with The Depository Trust Company no later than Thursday, May 22, 2008. Requests for repayment cannot be accepted directly by TVA.
On June 1, 2008, TVA will pay $25 for each bond properly returned, plus a quarterly interest payment of 34.3125 cents per bond, reflecting the current annual interest rate of 5.49%.
If you have questions about the TVA PARRS, please contact TVA by sending an email to investor@tva.com, or by calling (888) 882-4975 (toll-free).
Click here for a PARRS reset history.
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)
