UI Refinancing Saves $500,000 In Interest Expense

Business Wire, Dec 16, 1999

NEW HAVEN, Conn.--(BUSINESS WIRE)--Dec. 16, 1999--

The United Illuminating Company (UI) has completed the refinancing of $25 million in tax-exempt pollution revenue bonds, which originally were issued in 1989 to finance part of UI's ownership share in the Seabrook Unit 1 nuclear power plant. The interest rate on the bonds, which were to mature in 2014, was 8%.

This transaction replaces the original 8% bonds with new bonds that mature in 2029 and have an interest rate of 5.4%. The refinancing results in annual interest expense savings of approximately $500,000.

This transaction is the latest in a series of refinancing exercises that have lowered the annual interest expense on the company's long term debt. Annual interest expense, which peaked in 1989 at $114 million, is expected to be less than $40 million in 2000. UI is a New haven-based regional distribution utility that provides electricity and energy related services to more than 314,000 customers in municipalities in the Greater New haven and Greater Bridgeport areas. UI's World Wide Web address is http://www.uinet.com and the company is traded on the New York Stock Exchange under the symbol UIL.