Great River Energy’s financial health and a strong bond market added up to a favorable financing for the cooperative.
Great River Energy received $300 million on Aug. 30, completing a private placement note issuance priced in May.
“Investors are responding favorably to Great River Energy, the stability of our member cooperatives, our long-term member contracts and our overall financial and corporate strategies,” said Vice President and Chief Financial Officer Larry Schmid. “This funding will help us keep costs competitive for our members.”
The transaction was jointly led by Bank of America, KeyBanc, Wells Fargo and US Bank with 16 institutional purchasers. The funds will be used to pay off the current balance of the syndicated credit facility which was used to finance capital projects.
Great River Energy maintains investment-grade ratings from Fitch Ratings (A-), Standard & Poor’s (A-) and Moody’s Investors Service (Baa1).