APPLICATION OF FLORIDA POWER & LIGHT CO.
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Florida Power & Light Co. sought regulatory approval from the Florida Railroad & Public Utilities Commission to issue and sell $15,000,000 in first mortgage bonds due 1986 to finance construction of electric and gas facilities. The Commission approved the application subject to conditions requiring competitive bidding to achieve the lowest cost of money, expiration within 60 days if not acted upon, and post-transaction reporting.
The Commission approved the application for issuance and sale of the $15,000,000 first mortgage bonds, finding the issuance to be in the public interest, subject to conditions requiring competitive bidding to achieve the lowest cost of money, expiration of authorization within 60 days if not acted upon, and filing of a complete post-transaction report within 60 days after consummation.
“the commission being fully advised in the premises and of the opinion that the issuance and sale of the New Bonds is in the public interest”
Establishes the Commission's finding that the bond issuance serves the public interest, the basis for approval.
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Join FLexlaw to unlock all legal intelligenceFlorida Power & Light Co., a public utility under Florida law, applied for authority to issue $15,000,000 principal amount first mortgage bonds, serie…
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Florida Power & Light Co., a Florida corporation and a public utility within the meaning of chapter 26545, Laws of Florida, Acts of 1951, has applied to the commission for authority to issue and sell $15,000,000 principal amount first mortgage bonds, series due 1986 (the “New Bonds”).
*84It appears that the officers of the company are proceeding with the transaction by means of competitive bidding and public offering; however, the medium of this sale may be not only by means of competitive bidding and public offering but also by a negotiated public offering or private sale. The company will receive a minimum of $15,000,000, plus accrued interest from December 1, 1956, less expenses in connection with the sale. It is planned to open bids on this transaction on December 11, 1956, and tentative closing date is December 18,1956.
The purpose for which the bonds are to be issued is to secure funds which will be used to provide additional electric and gas facilities and for other corporate purposes. It is estimated by the applicant that its 1957-1958 construction costs will approximate $132,000,000, of which $66,000,000 will be expended in 1957 in the following principal categories: Electric — production $20,500,000, transmission and distribution $43,000,000, other additions and improvements $1,600,000; Gas — production and distribution $300,000; and $66,000,000 will be expended in 1958. These estimates are subject to changes in costs and availability of labor and materials.
The company has filed registration statement on form S-l with the Securities and Exchange Commission, Washington, D. C., with respect to this transaction and under the company’s present plan of procedure (which may be changed because of market or other conditions) the proposed financing is subject to effective registration of the New Bonds under the Securities Act of 1933, as amended.
It is estimated that the expenses of issuance and distribution will
be as follows—
Federal stamp tax______________________________________________________$16,500
Filing Fee — Securities and Exchange Commission.. 1,540
Fees of company New York counsel________________________ 10,000
Auditing fees___________________________________________________________ 2,500
Printing — Including S-l, prospectuses, etc_____________ 15,000
Printing and engraving bonds.___________________________________ 5,000
Trustees fees, including counsel and
authentication fees____________________________________________ 8,000
Miscellaneous______________________________________________________________ 11,460
Total Estimated Expenses__________________________________________$70,000
All charter requirements and all provisions of the statutes of Florida have been complied with and the commission being fully advised in the premises and of the opinion that the issuance and sale of the New Bonds is in the public interest,
*85It is ordered that the proposed issuance and sale by Florida Power & Light Co. of said $15,000,000 principal amount, first mortgage bonds, upon the terms and conditions and for the purposes specified in said application, including the media of sale mentioned in the second paragraph of this order, be and the same are hereby approved subject to the following conditions—
1. Said $15,000,000 principal amount, first mortgage bonds, shall be sold at such interest rate and on such terms as will provide Florida Power & Light Co. -with the lowest “cost of money” to be determined as provided in the “Public Invitation for Bids” and the “Statement of Terms and Conditions relating to Bids for $15,000,000 First Mortgage Bonds, Series due 1986” which are filed in these proceedings as a part of Exhibit 1;
2. That this authorization shall expire unless acted upon within 60 days from the date of this order; and
3. That applicant shall file a full and complete report of the consummation of the transaction involved herein, together with a statement of costs and expenses incurred in connection therewith, not later than 60 days after such consummation.