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TVA BOND REFINANCING SAVES $20 MILLION

 KNOXVILLE, Tenn., July 21 /PRNewswire/ -- The Tennessee Valley Authority will save $20 million a year in interest costs with the refinancing of $2 billion in power bonds, TVA Chairman Craven Crowell announced today.
 TVA selected a syndicate headed by The First Boston Corporation; Goldman, Sachs & Co.; and Lehman Brothers to refinance the higher interest public debt.
 A Tennessee Valley firm, First Tennessee Bank N.A., also is participating in the refinancing transactions. This is the highest level of participation by a Valley firm in a TVA negotiated transaction, according to Crowell.
 "A total of 25 other Valley investment banking firms were asked to participate in the financial transaction," Crowell said. "In the future, we will redouble efforts to involve Valley firms in our financial transactions as we continue to aggressively pursue opportunities to reduce our interest expense."
 TVA issued securities of $750 million in 50-year bonds with a 10-year call provision and $1.25 billion in 10-year bonds with a three- year call provision.
 The 50-year bonds offered by First Boston Corporation had a coupon of 7-1/4 with an anticipated public reoffering price of 97.508 for a yield to the public of 7.44. The 10-year bonds offered by Lehman Brothers had a coupon of 6-1/8 with an anticipated public reoffering price of 98.716 for a yield to the public of 6.30 percent.
 TVA is one of the nation's largest electric utilities serving 160 power distributors that provide power to more than 7 million consumers in a seven-state region.
 Although TVA is a federal corporation, the agency's power program is completely financed by revenues from the sale of electricity.
 -0- 7/21/93
 /CONTACT: Gil Francis, Public Relations, TVA, 615-632-8031 or 615-632-6000/


CO: Tennessee Valley Authority ST: Tennessee IN: UTI SU:

MM -- CH017 -- 4077 07/21/93 15:18 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
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