Avista Corporation (NYSE:AVA) announced the successful closing of a remarketing effort for a total of $83.7 million in pollution control revenue refunding bonds associated with the City of Forsyth, Montana, on April 1, 2024.

The remarketed bonds, due in 2032 and 2034 and initially acquired by Avista Corp. in December 2010, have now been sold to unaffiliated investors under more favorable market conditions.

The refinanced bonds, secured by an equal principal amount of the company’s non-transferable first mortgage bonds, carry a term interest rate of 3.875 percent.

This strategic financial maneuver was executed with the aim of optimizing market opportunities to benefit Avista Corp. and its stakeholders.

While Avista Corp. held the bonds, their value was not reflected in the company’s consolidated balance sheets as either an asset or a liability.

However, with the successful remarketing, Avista Corp. will now recognize this as long-term debt, amounting to $83.7 million, on its financial statements.

Additionally, Avista Corp. settled two interest rate swap derivatives in March 2024, in connection with the bond pricing.

The settlement, involving a notional aggregate amount of $20 million, resulted in the company receiving a net amount of $4.4 million.

This sum will be amortized and recognized as part of the interest expense over the debt’s lifespan.

The net proceeds from the remarketing have been allocated towards refinancing existing short-term debt obligations.