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TVA ANNOUNCES $1 BILLION BOND SALE

 TVA ANNOUNCES $1 BILLION BOND SALE
 KNOXVILLE, Tenn., Aug. 27 /PRNewswire/ -- The Tennessee Valley


Authority has added flexibility to $1 billion of its outstanding debt and lowered interest expense by more than $2 million a year through the sale of three-year bonds today.
 The bonds were sold to a syndicate headed by First Boston Corporation and have a coupon of 4.75 percent. The anticipated public reoffering price is 99.641, and the yield to the public will be 4.88 percent. The proceeds to TVA were 99.491 per bond.
 The transaction was undertaken to refinance $1 billion in bonds with a maturity date of Oct. 1, 1994. TVA sold the bonds in 1989. Those bonds have a 8-1/4 percent coupon rate and do not have a call provision.
 The 1989 bonds will be exchanged for the three-year bonds sold today. The new bonds have a call provision beginning in one year. This extends the maturity date by one year at no additional cost to TVA.
 "This is an innovative way for TVA to increase its flexibility, get call provisions on debt that previously did not have a call provision, and save money at the same time," said William F. Malec, executive vice president and chief financial officer. "The transaction will save TVA more than $2 million a year."
 This marked TVA's fourth bond sale in the past five weeks, for sales of $2.95 billion.
 -0- 8/27/92
 /CONTACT: William F. Malec, 615-632-3987, or B.J. Wright, 615-632-8020, both of Tennessee Valley Authority/ CO: Tennessee Valley Authority ST: Tennessee IN: UTI SU:


SB -- CH005 -- 3954 08/27/92 12:40 EDT
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Publication:PR Newswire
Date:Aug 27, 1992
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