Public utilities and the debt-for-equity swap

Journal Article · Thu Mar 29 04:00:00 EST 1984 · Public Util. Fortn.; (United States)

OSTI ID:5119426

Bierman, H Jr

Competitive corporations have been swapping low interest debt selling at discount for common stock for the past several years. Calculations to determine if there are advantages for regulated public utilities show that one solution benefits only stockholders, while a second benefits only ratepayers. Given the two extreme solutions, it would not be difficult to modify the process so that both the ratepayers and the stockholders benefit from the swap. The transaction can be particularly profitable if the utility has to acquire bonds to fill sinking-fund requirements, or if a stronger improved capital structure is desirable.

• Research Organization: Cornell Univ., Ithaca, NY
• OSTI ID: 5119426
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 113:7; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
CALCULATION METHODS
DATA
FINANCIAL DATA
FINANCING
INFORMATION
INVESTMENT
PUBLIC UTILITIES