California ISO Securing Permanent Financing.FOLSOM, Calif.--(BUSINESS WIRE)--May 5, 1998--The California Independent System Operator (Cal-ISO) Corporation today closed on the $101,600,000 initial phase of its permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. consisting of $301,400,000 of bonds to be issued on behalf of the Cal-ISO by the California Economic Development Financing Authority and to be underwritten by J.P. Morgan Securities, Inc. The second phase is scheduled to close on May 15, 1998. The bonds are to be remarketed by J.P. Morgan Securities, Inc., Bear Stearns & Co., Inc. and Lehman Brothers. The bonds issued on behalf of Cal-ISO will be backed by a direct pay Letter of Credit from Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. N.T. & S.A. An interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. with Morgan Guaranty Trust Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of will convert the daily interest rate into a ten-year fixed rate. The permanent financing will replace the interim financing provided by the ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. Restructuring Trust, which was guaranteed by the state's three investor-owned utilities (Pacific Gas & Electric, Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. , and San Diego Gas & Electric). The permanent financing will also provide funds to repay the completion of the infrastructure and to provide for working capital and capital expenditure requirements. By safeguarding the delivery of electricity and ensuring equal access to the bulk of the state's transmission systems, the not-for-profit Cal-ISO is playing a critical role in the state's mission to foster lower electric rates, provide consumer choice, and offer safe and reliable electric service. On March 31,1998, the Cal-ISO assumed computerized command of the transmission systems formerly controlled by the state's three investor-owned utilities, enabling the new competitive electricity era to begin in California. CONTACT: California ISO Patrick Dorinson, 916/351-4466 |
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