Southeast Energy Authority Offering $2.65 Billion in Bonds to Prepay for Energy

By Stephen Nakrosis

Southeast Energy Authority is offering $2.65 billion in Series 2025 E energy supply revenue bonds, with proceeds going to prepay for natural gas and electricity.

The energy will be delivered over the course of 30 years, and sold to the Salt River Project Agricultural Improvement and Power District. Salt River is a non-profit organization providing water and energy to some 2 million people in central Arizona.

The energy will be provided by Pierpont Energy Prepay 2, a Delaware limited liability company, according to offering documents on MuniOS. J.P. Morgan Securities will act as funding provider, and BP Energy Co. and the Royal Bank of Canada are the commodity swap counterparties.

The bonds will be secured by a lien on a trust estate, which includes proceeds from the bond sale, revenues, and pledged funds, among other assets. The bonds are a special, limited obligation of the Authority, and are payable solely from the trust estate's assets.

The preliminary amortization schedule shows $30 million of the bonds maturing on Oct. 1, 2027. On Oct. 1, 2028, $32 million of bonds are scheduled to mature, with $33 million slated to mature on Oct. 1 of 2029. The final maturity of $2.55 billion in bonds is scheduled for Oct. 1, 2030.

Pricing on the offering is expected as early as Nov. 3. Interest rates and yields on the bonds haven't been set. Interest on the bonds is exempt from federal taxes, as well as state of Alabama taxes.

Moody's Investors Service has given the bonds a municipal bond rating of Aa3.

Southeast Energy Authority, or SEA, is a public corporation founded by Alabama in 2019. It provides long-term supplies of natural gas and electricity for its members and other governmentally owned customers both in Alabama and across the U.S.

J.P. Morgan is listed as the offering's manager.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 29, 2025 14:40 ET (18:40 GMT)