MONCKS CORNER, S.C. (WCBD) – The Santee Cooper Board of Directors approved today an Assignment and Purchase Agreement with Citibank, N.A., to sell the monetary rights of its portion of the $2.168 billion Toshiba Guaranty Settlement Claim. The agreement does not include the first-scheduled payment from Toshiba of $150 million.
The agreement pays 91.5 percent of the settlement claim and Santee Cooper will receive $831.2 million today for its 45 percent share. This payment eliminates the risk to Santee Cooper and its customers of collecting those dollars from Toshiba over the next five years. Santee Cooper’s 45 percent share of the first payment from Toshiba, scheduled for October 2017, is $67.5 million.
“This shifts the risk away from Santee Cooper and our customers, allowing for a one-time payment to take place now instead of a number of payments over five years,” said Leighton Lord, Chairman of the Santee Cooper Board of Directors. “We will use this money to benefit customers by offsetting rate increases in the short term, offsetting debt over the long term and paying our portion of mechanics liens.”
Santee Cooper received 13 initial bids from five broker-dealers and eight investment management firms. Of those, Santee Cooper pursued discussions with five respondents with the strongest offers. Upon analyzing the revised bid packages, Citibank submitted the highest numeric bid and Santee Cooper accepted that bid. The elimination of the Toshiba risk is expected to be viewed positively by the financial community.
Santee Cooper is South Carolina’s largest power provider, largest Green Power generator and the ultimate source of electricity for 2 million people across the state. Through its low-cost, reliable and environmentally responsible electricity and water services, and through innovative partnerships and initiatives that attract and retain industry and jobs, Santee Cooper powers South Carolina. To learn more, visit http://www.santeecooper.com.