20051125Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:NOVEMBER 23, 2005
RE:IN THE MATER OF A VISTA CORPORATION'S APPLICATION FOR
AUTHORITY TO ISSUE AN ADDITIONAL $50,000,000 OF DEBT;
CASE NO. A VU-05-
Order No. 29296 on October 20 2005 granted Avista Corporation (Avista) authority to
offer, issue and sale up to and including $100 000 000 of secured or unsecured, fixed or floating
rate bonds, notes or other form of indebtedness. The authorized issuances were completed
November 17, 2005 for a 30-year term at a coupon interest rate of 6.25%. Within an hour of
official announcement, the offer was more than 2 times over-subscribed. With the strong interest
by investors and the favorable rate, A vista requests an amendment to authorize it to issue an
additional $50 000 000 under the same terms as granted in Order No. 29296.
STAFF RECOMMENDATION
The additional request of $50 000 000 debt like the original $100 000 000 proposed debt
issuance and redemptions provide an opportunity for A vista to reduce borrowing costs and to
increase flexibility with future refinance options. Staff recommends approval of the additional
$50 000 000 debt authority with the remaining terms and conditions staying the same.
DECISION MEMORANDUM - 1 -NOVEMBER 23, 2005
COMMISSION DECISION
Does the Commission accept Staff s recommendations to approve A vista s request for
authority to issue and sell up to and including an additional $50 000 000 debt.
J ~,Gd.or
Terri Carlock
i:udmemos/avuuO5.l.dml1.2005
DECISION MEMORANDUM - 2-NOVEMBER 23 , 2005