On The Move
Interest rates on Santee Cooper's tax-free Mini-Bonds announced
Sep 18, 2008
MONCKS CORNER, SC - September 18, 2008 - Interest rates on Santee Cooper Mini-Bonds have been announced today, ranging from 3.00 percent up to 4.80 percent on the maturities of tax-free securities the state-owned electric and water utility will offer through Oct. 15.
The primary objective of the sale of mini-bonds is to provide an opportunity for the people of South Carolina to purchase Santee Cooper bonds while generating funds for capital improvement projects. Mini-bond proceeds will be used to finance equipment and ongoing capital improvements to the utility’s generating and transmission systems.
The 2008 mini-bond program includes two types:
• Santee Cooper 2008 Series M Capital Appreciation Mini-Bond in $200 denominations. Interest compounds and will be paid on the bond’s maturity date or upon early redemption. Those maturing on Jan. 1, 2018 have an interest rate of 3.80 percent, those maturing on Jan. 1, 2023 will bear 4.50 percent and those maturing on Jan. 1, 2028 have an interest rate of 4.80 percent.
• Santee Cooper 2008 Series M Current Interest Bearing Mini-Bond in $500 denominations. Interest will be paid semiannually to the registered owner. These bonds’ interest rates are as follows:
Jan. 1, 2013 maturity date – 3.00 percent
Jan. 1, 2018 maturity date – 3.80 percent
Jan. 1, 2023 maturity date – 4.50 percent
Jan. 1, 2028 maturity date – 4.80 percent
Regardless of which type of bond you choose, under current law, they're both free from federal and South Carolina income tax.
How to purchase
Santee Cooper Mini-Bonds are available to residents of South Carolina, customers of Santee Cooper, members of electric cooperatives in South Carolina, and electric customers of the Bamberg Board of Public Works and the city of Georgetown.
Order forms are available for download. Completed order forms and payment must be received in the Moncks Corner office by Oct. 15. Go to www.santeecooper.com/minibonds to get up-to-date information about the program. Call (877) 246-3338 toll-free to request an information packet. Investors can purchase Santee Cooper Mini-Bonds in person or by mail by contacting:
• Nan Cline, Debt Administrator
Santee Cooper Headquarters
One Riverwood Drive
Moncks Corner, SC 29461
For more information, e-mail questions, email@example.com or call (877) 246-3338 toll-free. This Bondholder Relations number is active year-round.
The maximum combined purchase is $50,000 per individual. A married couple may purchase up to $100,000 total.
Beginning Jan. 1, 2009, you may sell your bonds to Santee Cooper for the purchase price (less a 3 percent administrative fee) plus accrued interest, with a minimum 30-day written notice, upon the terms and conditions described in the Official Statement. Beginning Jan. 1, 2008, bonds may be redeemed by Santee Cooper with a 30-day written notice, upon the terms and conditions described in the Official Statement.
Santee Cooper is South Carolina's state-owned electric and water utility and the state's largest power producer, supplying electricity to more than 162,000 retail customers in Berkeley, Georgetown and Horry counties, as well as to 29 large industrial facilities, the cities of Bamberg and Georgetown, and the Charleston Air Force Base. Santee Cooper also generates the power distributed by the state's 20 electric cooperatives to more than 685,000 customers in all 46 counties. Approximately 2 million South Carolinians receive their power directly or indirectly from Santee Cooper. The utility also provides water to 137,000 consumers in Berkeley and Dorchester counties, and the town of Santee. For more information, visit www.SanteeCooper.com. For information on how Santee Cooper lives green and how you can go green, visit www.SanteeCooperGreen.com.