Santee Cooper Board Approves $615.3 Million Bond Sale

Sale benefits customers by reducing cost impacts and refinancing certain debt for an overall savings

MONCKS CORNER, S.C. – Continuing its focus on strategic financial management to control costs for customers, the Santee Cooper Board of Directors today unanimously approved the sale of approximately $615.3 million in bonds that will deliver savings and other benefits to customers.

The 2026 Tax-Exempt Improvement Series D Bonds totaling $251.2 million and the 2026 Taxable Improvement Series E Bonds totaling $218.7 million were issued to pay down shorter-term variable debt taken out initially to fund approved Cook rate freeze exceptions. The new bond issue allows Santee Cooper to reduce the impact of these costs on customers by stabilizing the rate.

The refinancing portion of the transaction, the 2026 Tax-Exempt Refunding Series F, totals $145.4 million and refinances debt issued in 2016. This transaction will save customers approximately $12 million in net present value savings, or roughly $19 million in gross debt service through 2046.

“Santee Cooper entered the market with a transaction offering over $600 million in a combination of tax-exempt and taxable bonds,” said Vice President and Chief Financial Officer Tami Wilson. “Due to strong investor interest, the transaction resulted in almost $2 billion in orders, 3 ½ times oversubscribed, which allowed for interest rate reductions on most of the maturities. The high demand for the bond sale is evidence of investors’ continued confidence in Santee Cooper’s strategy.”

President and CEO Jimmy Staton added, “This was a great result. We’re excited to have the oversubscription, and the ability to drive down interest rates will help our customers significantly.”

Strategic timing, good investor familiarity and positive improvements to Santee Cooper’s credit ratings contributed to the strong result, the transaction advisors noted. 

“We had, as you heard, the positive news of Santee Cooper batting 3 for 3, getting upgrades and positive outlooks from the rating agencies,” said Michael Mace, managing director for PFM Financial

Advisors. “In 40 years-plus, I think there’s only been a handful of times I’ve had that good fortune, taking a bond issue into the market with that kind of news.”

Prior to the sale, Santee Cooper received favorable updates from all three rating agencies. Fitch and S&P upgraded their ratings from A‑ to A, both with stable outlooks. Moody’s affirmed its A3 rating and revised its outlook from stable to positive.

The transaction’s all-in true interest cost is 4.136%. The improvement bonds fall within the approved parameters approved by the South Carolina Joint Bond Review Committee.   

The transaction was led by Barclays. Co-Senior managers were J.P. Morgan and BofA Securities. Co-managers included American Veterans Group, Goldman Sachs & Co., Truist Securities, TD Financial Products, and Wells Fargo Securities. PFM served as financial advisor.