Empire District Electric Co. (EDE) announced that it has entered into a Bond Purchase Agreement for a private placement of $88 million aggregate principal amount of its 3.58% First Mortgage Bonds due 2027. The first settlement of $38 million occurred today, and a second settlement of $50 million is anticipated to occur on or about June 1, 2012. The bonds will mature on April 2, 2027. Interest is payable semi-annually on the bonds on each April 2 and October 2, commencing October 2, 2012.
The company said that it expects to use the proceeds from the sale of the bonds to redeem (1) all $74.83 million aggregate principal amount of the Company's First Mortgage Bonds, 7.00% Series due 2024, (2) all $5.20 million of the Company's First Mortgage Bonds, 5.20% Pollution Control Series due 2013, and (3) all $8 million of the Company's First Mortgage Bonds, 5.30% Pollution Control Series due 2013.
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