By Paulo Trevisani


Alabama's Southeast Energy Authority plans to issue $600 million in bonds to acquire natural gas and electricity.

The public corporation and capital improvement cooperative district will issue the Series 2024A bonds to prepay a 30-year supply from Aron Energy Prepay 36 LLC, which it will buy from J. Aron & Co., the commodities-trading arm of Goldman Sachs, according to documents posted Tuesday on MuniOs.

The bonds will be tax-exempt and fixed-rate, with final maturity preliminarily set for November 2035.

Coupon and yield information wasn't available. The bonds are payable by SEA's revenue.

SEA serves as a wholesale supplier for electricity and natural gas for its own members and other government-owned wholesale customers. It is a sister entity of the Southeast Alabama Gas Supply District. Both have executed prepayment transactions before.

Goldman Sachs and Stifel, Nicolaus & Company are underwriters.

Moody's Investors Service has assigned a municipal bond rating of Baa1 to the bonds.


Write to Paulo Trevisani at paulo.trevisani@wsj.com


(END) Dow Jones Newswires

10-30-24 1441ET