Investor Information
Financing Goal
TVA’s financing goal is to offer unique investment opportunities that provide exceptional value for both the investor and TVA.
Discount Notes 10%
<1 through 10 years 42%
11 through 30 years 33%
31 through 50 years 15%
Bond and Note Maturities
At September 30, 2006, TVA had 87 long-term bonds and notes outstanding, of various final maturities, which totaled $20.51 billion. TVA had $2.38 billion in short-term Discount Notes outstanding at September 30, 2006.
Other Long-Term Power
Bonds 74%
Discount Notes 9%
Other Financing Obligations 9%
electronotes® 4%
Putable Automatic Rate Reset Securities (PARRS) 4%
Financing Structure
At September 30, 2006, TVA had $22.89 billion of bonds and notes outstanding, including short-term Discount Notes, electronotes®, PARRS, and other Power Bonds.
TVA also had $2.35 billion of Other Financing Obligations outstanding for Total Financing Obligations of $25.24 billion.
Key features of TVA bonds
Credit Ratings: TVA’s rated Power Bonds are rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s and Fitch Ratings.
Statutory Requirements: The TVA Act requires TVA to set power rates sufficient to pay, among other things, debt service on outstanding bonds.
First Pledge of Payment: Holders of TVA bonds and notes are given first pledge of payment from net power proceeds.
Purpose of Issuance: TVA may issue securities only to provide capital for its power program or to refund existing indebtedness. TVA may issue other power program financings that rank on parity with, but not ahead of, TVA’s senior bonds and notes.
State & Local Tax Exemption: Both principal and interest on TVA securities are generally exempt from state and local income taxes.
TVA securities are backed solely by the net power proceeds of the TVA power system and are neither obligations of nor guaranteed by the United States Govern
Form and Denomination
Security |
Book-Entry Form |
Denomination* |
Payments |
|---|---|---|---|
electronotes® (62 issues) |
The Depository Trust Company |
$1,000 |
Varies with offering |
PARRS (2 issues) |
The Depository Trust Company |
$25 |
Quarterly |
2003 Series A Sterling Global |
The Depository Trust Company |
£1,000 |
Annual |
2001 Series B Sterling Global |
The Depository Trust Company |
£1,000 |
Annual |
1998 Series H Sterling Global |
The Depository Trust Company |
£1,000 |
Semi-annual |
Other Power Bonds (20 issues) |
Federal Reserve Bank System |
$1,000 |
Various |
*Market prices and broker policies may require investors to pay more or less than par value for a security in secondary market transactions. This page does not include all information about TVA or TVA securities that is important for making investment decisions.
Description of TVA Securities
TVA’s electronotes® program offers bonds in a variety of different structures targeted to individual investors. The bonds are generally issued in denominations of $1,000, with maturities ranging from 1 to 30 years.
Putable Automatic Rate Reset Securities (PARRS)
These bonds trade on the New York Stock Exchange under the symbols “TVC” and “TVE.” They were issued in denominations of $25 and pay interest quarterly. An annual reset provision provides for a possible reduction in the coupon rate under certain conditions. If the rate is reset, investors may put (return) the bonds to TVA at par value.
Discount Notes
These are short-term notes offered for sale on a continuing basis to investment dealers and dealer banks. Discount notes are sold at a discount, in book-entry form, in principal amounts of $100,000 and additional increments of $1,000.
Other TVA Power Bonds
TVA has issued both global and domestic bonds of varying maturities, structures, and interest payment frequencies and in different currencies.
The 2006 Annual Report does not constitute an offer to sell or a solicitation of an offer to buy any TVA securities.
General Inquiries
Peyton T. Hairston, Jr.
Senior Vice President,
Communications
Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, TN 37902
E-mail: tvainfo@tva.com
Phone: 865-632-6000
Fax: 865-632-8862
Investor Inquiries
Tammy W. Wilson
Interim Senior Vice President,
Treasurer/Investor Relations
Tennessee Valley Authority
400 West Summit Hill Drive
Knoxville, TN 37902
Web Site: www.tva.com/finance
E-mail:
investor@tva.com
Phone:
888-882-4975 (toll-free in the U.S.)
Phone: 888-882-4967 (toll-free outside the U.S.)
Fax: 865-632-6673
E-mail alert
E-mail alerts are conveniently sent to a subscriber’s e-mail address whenever certain new information about TVA bonds is available. To learn more about how to subscribe to e-mail alerts, visit TVA’s web site.
Additional information
Please visit our Investor Resources page for more details on TVA investment opportunities as well as offering circulars for specific securities, or call TVA’s Treasury organization toll-free at 888-882-4975. TVA does not sell securities directly to investors. TVA securities may generally be purchased through a broker, bank, or other financial institution.
Guide to using TVA’s Annual Report and Form 10-K
This 2006 Annual Report is intended to provide highlighted information of interest about TVA's business and operations during its 2006 fiscal year, which ended on September 30, 2006. The Annual Report should be read in conjunction with TVA’s Form 10-K Annual Report for the year ended September 30, 2006. The 10-K provides additional financial, operational, and descriptive information, including financial statements for TVA’s fiscal year 2006. The 10-K also provides important information about various risks to which TVA is exposed in the course of its operations, which are important to consider before investing in any TVA securities.
The 2006 TVA Annual Report and 2006 10-K do not contain all information about specific TVA securities that is important for making investment decisions. Please refer to the appropriate Offering Circular, and any relevant supplements, for detailed information about TVA securities.