Boston Edison Company Announces Securitization of Stranded Costs.BOSTON--(BUSINESS WIRE)--July 22, 1999-- Boston Edison Company (BSE-NYSE) today Massachusetts RRB RRB abbr. Railroad Retirement Board Special Purpose Trust BEC-1, a special purpose entity created by MassDevelopment and Massachusetts Health and Educational Facilities Authority to enable Boston Edison Company to securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. a portion of its approved stranded cost recovery, agreed to sell $725 million of rate reduction bonds. The rate reduction bonds are to be issued Thursday, July 29, in five separate classes with weighted average lives ranging from approximately 1.1 to 9.6 years. All classes bear interest at fixed rates ranging from 5.99 to 7.03 percent. This sale is the first such offering under the Massachusetts rate reduction bond program. All of the rate reduction bonds were sold to a syndicate of underwriters managed by Lehman Brothers and Goldman Sachs & Co. The bonds are expected to be rated AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. by Standard & Poor's, Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps and Aaa by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . Boston Edison Company was authorized by the Massachusetts Department of Telecommunications and Energy to securitize stranded costs previously approved for recovery, primarily relating to the sale of Pilgrim Nuclear Power Station. Boston Edison is currently recovering these stranded costs by collecting a transition charge. A portion of the current transition charge on utility customers' bills will be sold by Boston Edison to BEC Funding LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a special purpose entity formed by it, and will provide revenue to service the bonds. The issuance of the bonds is expected to provide approximately $76 million of savings to Boston Edison Company customers. |
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