$267,408,000 Senior Secured Phase-In-Recovery Bonds, scheduled to pay principal semi-annually and sequentially in accordance with the expected sinking fund schedule.
Issuing Entity and Capital Structure
Ohio Phase-In-Recovery Funding LLC is a special purpose Delaware limited liability company. Ohio Power Company is our sole member and owns all of our equity interests. We have no commercial operations. We were formed solely to purchase and own phase-in-recovery property, to issue the bonds and to perform activities incidental thereto. Please read “Ohio Phase-In-Recovery Funding LLC, the Issuing Entity” in the accompanying prospectus.
In addition to the phase-in-recovery property, we will be capitalized with an upfront cash deposit equity contribution from OPCo equal to 0.5% of the bonds’ initial principal amount issued (held in the capital subaccount) and will have an excess funds subaccount to retain any amounts collected and remaining on a payment date after all payments on the bonds and all ongoing financing costs (subject to the cap provided in the financing order) have been made.
Purpose of transaction
This issuance of the bonds will enable OPCo to recover certain uncollected previously approved phase-in costs and associated financing costs in the State of Ohio. Please read “The Securitization Law” in the accompanying prospectus.
The State of Ohio has pledged in the Securitization Law to bondholders, any assignees, and any financing parties under the financing order that it will not take or permit any action that impairs the value of the phase-in-recovery property for which recovery is authorized under the financing order or revises the phase-in costs authorized for recovery under the financing order, or, except for the specified true-up adjustments to correct any overcollections or undercollections, reduce, alter or impair the phase-in-recovery charges that are imposed, charged, collected, or remitted for the benefit of the bondholders, any assignee, and any financing parties until all principal and interest in respect of the bonds, all financing costs, and all amounts to be paid to an assignee or financing party under certain agreements entered into in connection with the bonds are paid or performed in full.
Ohio has both a voter initiative and a referendum process. The time for challenging the Securitization Law through a referendum has expired, but the right of voters in Ohio to enact laws by initiative can be exercised at any time, provided a lengthy process is followed and successfully concluded. Constitutional protections against actions that violate the state pledge should apply whether legislation is passed by the Ohio General Assembly or is brought about by a voter initiative.
Please read “The Securitization Law—OPCo and Other Utilities May Securitize Phase-in Costs” in the accompanying prospectus.
One Riverside Plaza
Columbus, Ohio 43215
Our Telephone Number
|07/02/2018||10-D||2018 Form 10-D|
|03/23/2018||10-K||2017 Form 10-K|
|07/01/2017||10-D||2017 Form 10-D|
|03/30/2017||10-K||2016 Form 10-K|
|01/04/2017||10-D||2017 Form 10-D|
|07/01/2016||10-D||2016 Form 10-D|
|01/04/2016||10-D||2016 Form 10-D|
|03/28/2016||10-K||2015 Form 10-K|
|07/01/2015||10-D||2015 Form 10-D|
|03/27/2015||10-K||2014 Form 10-K|
|01/09/2015||10-D/A||2015 Form 10-D/A|
|01/02/2015||10-D||2015 Form 10-D|
|06/26/2014||10-D||2014 Form 10-D|
|03/28/2014||10-K||2013 10-K Certificate|
|08/02/2013||8-K||2013 Form 8 – K|
|07/25/2013||424B5||Prospectus Filed Pursuant to Rule 424|
|07/24/2013||433||Term Sheet Filed Pursuant to Rule 433|
Senior Secured Phase-In-Recovery Bonds
Ohio Phase-In-Recovery Funding LLC
Senior Secured Phase-In-Recovery Bonds
|Tranche||Expected Average Life (Years)||Principal Amount Issued||Scheduled Final Payment Date||Final Maturity Date||Interest Rate||Initial Price to Public||Underwriting Discounts and Commissions||Proceeds to Issuer(Before Expenses)|
The total initial price to the public is $267,401,994. The total amount of the underwriting discounts and commissions is $1,069,632. The total amount of proceeds to the issuing entity before deduction of expenses (estimated to be $2,670,763) is $266,332,362.
Investing in the Senior Secured Phase-In-Recovery Bonds involves risks. Please read “Risk Factors” on page 10 of the accompanying prospectus.
Ohio Phase-In-Recovery Funding LLC, or the issuing entity, is issuing $267,408,000 of Senior Secured Phase-In-Recovery Bonds, referred to herein as phase-in-recovery bonds or the bonds in two tranches. Ohio Power Company, or OPCo, is the depositor, seller, initial servicer and sponsor with regard to the bonds. The bonds are senior secured obligations of the issuing entity supported by the phase-in-recovery property described in this prospectus supplement, which includes the right to a special, irrevocable nonbypassable charge, known as a phase-in-recovery charge, paid by retail electric customers of OPCo (or any successor) based on their consumption of electricity as discussed in this prospectus supplement and in the accompanying prospectus. The Securitization Law (as defined herein) mandates that phase-in-recovery charges be adjusted annually, and the Public Utilities Commission of Ohio, or the PUCO, further requires such true-ups to occur semi-annually after the first annual true-up adjustment, if necessary, in each case to ensure the expected recovery of amounts sufficient to timely provide all scheduled payments of principal and interest on the bonds and other ongoing financing costs, as described further in this prospectus supplement and the accompanying prospectus. Credit enhancement for the bonds will be provided by such statutory true-up adjustments as well as by accounts held under the indenture.
The bonds represent obligations only of the issuing entity and do not represent obligations of OPCo or any of its affiliates other than the issuing entity. The bonds are secured by the assets of the issuing entity, consisting principally of the phase-in-recovery property and funds on deposit in the collection account for the bonds and related subaccounts. Please read “The Bonds—The Collateral” and “—The Phase-In-Recovery Property” and “Credit Enhancement” in this prospectus supplement. The bonds are not a debt or a pledge of the faith and credit or taxing power of the State of Ohio or of any county, municipal corporation or any other political subdivision of the State of Ohio.
Additional information is contained in the accompanying prospectus. You should read this prospectus supplement and the accompanying prospectus carefully before you decide to invest in the bonds. his prospectus supplement may not be used to offer or sell the bonds unless accompanied by the prospectus.
Matters relating to the structuring, marketing and pricing of the bonds have been considered jointly with the PUCO, acting through Oxford Advisors LLC and Public Resources Advisory Group, as its joint independent financial advisors.
Ratings assigned to the Ohio Phase-In-Recovery Funding LLC Senior Secured Phase-In-Recovery Bonds and to the debt issued by the Servicer
Issuer: Ohio Phase-In-Recovery Funding LLC
Instrument: Senior Secured Phase-In-Recovery Bonds
S&P Rating: AAA
Moody’s Rating: Aaa
Servicer: Ohio Power Company
Instrument: Senior Unsecured Debt
Moody’s Rating: Baa1
Moody’s Outlook: Stable
S&P Rating: BBB
S&P Outlook: Stable