Central Plains Energy Project Announces Consent Solicitation for its Gas Project Revenue Bonds, Series 2007A and Series 2007B

   Central Plains Energy Project Announces Consent Solicitation for its Gas
             Project Revenue Bonds, Series 2007A and Series 2007B

PR Newswire

NEW YORK, March 19, 2013

NEW YORK, March 19, 2013 /PRNewswire/ -- Central Plains Energy Project
("CPEP") announced today that it is soliciting consent to certain amendments
to the transaction from holders of its Gas Project Revenue Bonds, (Project No.
1) Series 2007A and Series 2007B (together with the Series 2007A Bonds, the
"Series 2007 Bonds") on the terms and subject to the conditions set forth in
the Consent Solicitation Statement dated March 18, 2013.

As more fully described in the Consent Solicitation Statement, the proposed
amendments would permit CPEP to:

  oProvide credit support for MBIA, Inc., as an investment agreement provider
    for the Working Capital Account of the Project Fund ($10,095,000), the
    Current Reserve Subaccount of the Debt Service Reserve Account
    ($21,630,000), and the Early Termination Reserve Subaccount of the Debt
    Service Reserve Subaccount ($6,235,000), by amending the Gas Supply
    Contracts between CPEP and the Project Participants, amending and
    restating the Receivables Purchase Agreement and amending the Goldman
    Sachs Guaranty, and by making corresponding amendments to the Indenture.



  oAmend and Restate the Gas Purchase Agreement between CPEP and J. Aron &
    Company, as gas supplier, to eliminate a seller default if The Goldman
    Sachs Group, Inc. fails to maintain a credit rating of "BBB-" or higher by
    Standard & Poor's or "Baa3" or higher by Moody's, or otherwise post credit
    support.



  oCreate a custodial arrangement with respect to the Commodity Swaps in
    order to mitigate CPEP's credit exposure to the Royal Bank of Scotland
    plc, as the commodity swap counterparty, and make corresponding amendments
    to the Commodity Swaps in connection therewith.

Adoption of the proposed amendments requires the consent of a majority in
principal amount of the Series 2007 Bonds outstanding. In addition to
receiving such consent, the proposed amendments will become effective upon the
satisfaction of certain conditions, including the Series 2007 Bonds receiving
ratings of at least "A3" from Moody's, "A-" from S&P and "A-" from Fitch
Ratings. As of March 18, the Series 2007 Bonds are rated "B2" by Moody's,
"B" by S&P and "A" by Fitch Ratings.

The consent solicitation will expire at 5:00 p.m., New York City time, on
April 16, 2013, unless terminated, shortened or extended by CPEP. Only
holders of record of the Series 2007 Bonds as of 5:00 p.m., New York City
time, on March 15, 2013, are eligible to deliver consents to the proposed
amendments in the consent solicitation.

CPEP has retained RBC Capital Markets, LLC to act as Solicitation Agent in
connection with the consent solicitation. Questions about the consent
solicitation may be directed to RBC Capital Markets, LLC at (855) 845-9469
(toll-free). Copies of the Consent Solicitation Statement and related
documents may be obtained from D.F. King & Co., the Information Agent and
Tabulation Agent for the consent solicitation, at (800) 431-9645 (toll-free)
or (212) 269-5550 (collect).

This announcement is for informational purposes only and is not a solicitation
of consents with respect to any securities. This announcement shall not
constitute an offer to buy or a solicitation of an offer to sell any Series
2007 Bonds. The consent solicitation is being made solely on the terms and
subject to the conditions set forth in the Consent Solicitation Statement and
is not being made in any jurisdiction in which it is unlawful to solicit or
grant consents.

CPEP is a separate legal entity and a public body corporate and politic
(including a not-for-profit corporation) organized under the laws of the State
of Nebraska and an instrumentality of its members pursuant to the provisions
of the Nebraska Interlocal Cooperation Act, Chapter 13, Article 8, of the
Nebraska Revised Statutes, as amended. CPEP was created to enable its members
to take joint and cooperative action with respect to the acquisition,
transportation, storage and management of natural gas and related services and
functions, including financing one or more natural gas projects. CPEP sells
the gas supply financed with the Series 2007 Bonds to the Metropolitan
Utilities District of Omaha and the Municipal Gas Utility of the City of Cedar
Falls, Iowa under Gas Supply Contracts that remain in effect through the term
of the Gas Purchase Agreement.

SOURCE Central Plains Energy Project

Contact: Tom Long, D.F. King & Co., Inc., +1-212-493-6920
 
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