DUFF & PHELPS: CITY OF PETERSBURG, IND. $66.85 MILLION POLLUTION CONTROL REFUNDING REVENUE BONDS, SERIES 1993A RATED 'AA'
CHICAGO, March 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to the City of Petersburg, Indiana's proposed offering for $66.85 million of pollution control refunding revenue bonds, Series 1993A (an Indianapolis Power & Light Company Project). Proceeds will be loaned to Indianapolis Power & Light (IPL) under a loan agreement and will be used to redeem outstanding pollution control revenue bonds. The bonds will be collateralized by IPL's first mortgage bonds, and will join the company's outstanding securities on Rating Watch -- Favorable/Unfavorable. IPL's parent, IPALCO Enterprises Inc., recently announced its intention to purchase PSI Resources Inc. (PSI) in a $1.5 billion tender offer ($26.50 per share) for cash and stock. IPALCO estimates a combination with PSI could achieve savings of $1.6 billion over 10 years by deferring capacity additions, consolidating functions, and other actions. PSI Energy, the principal subsidiary of PSI is slightly larger than IPL in terms of assets. The tender action will require corporate and regulatory approvals. It is uncertain whether a successful tender for PSI's shares will occur. In the absence of a combination with PSI, IPL's construction expenditures during the next five years are expected to total over $1 billion, primarily for compliance with clean air legislation, installation of combustion turbines, and construction of a baseload generating unit scheduled for completion by 1998. It is expected that the company will balance debt sales with the sale of common equity to maintain its capital structure. This pattern is typical of Indianapolis Power & Light's history, as it has built to meet load growth. Regulation in Indiana has been properly supportive through building cycles. Regulatory recognition of the increased expenditures will be necessary again. Indianapolis Power & Light currently provides electric service to over 385,000 customers in Indianapolis and surrounding area. PSI Energy, the largest electric utility in Indiana, provides electric service in the lower two-thirds of the state. -0- 3/30/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/
CO: ST: Indiana IN: SU: RTG
WB -- NY060 -- 1084 03/30/93 13:21 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 30, 1993|
|Previous Article:||DUFF & PHELPS CREDIT RATING CO. ADDS CENTRAL HUDSON GAS & ELECTRIC CORPORATION TO RATING WATCH -- UNFAVORABLE|
|Next Article:||RESIDENTIAL FUNDING MORTGAGE CERTIFICATES 1993-S12 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --|