WEIGHTED AVERAGE LIFE SENSITIVITY
| | | | | | | | | | | | | | | | | | | | |
| | | | | | -5%
(2.51 Standard
Deviations from Mean) | | | -15%
(5.27 Standard
Deviations from Mean) | |
| Tranche | | Expected Weighted Average Life (Years) | | | Weighted
Average
Life (Years) | | | Change (Days) | | | Weighted
Average
Life (Years) | | | Change (Days)
| |
A-1 | | | 7.42 | | | | 7.42 | | | | 0.00 | | | | 7.46 | | | | 15.00 | |
A-2 | | | 15.76 | | | | 15.76 | | | | 0.00 | | | | 15.76 | | | | 0.00 | |
There can be no assurance that the weighted average lives of the various tranches of the securitization bonds will be as shown in the above table.
For the purposes of preparing the chart above, the following assumptions, among others, have been made: (i) the forecast error is constant over the life of the securitization bonds and is equal to an overestimate of electric customer counts of 5% (2.51 standard deviations from the mean) or 15% (5.27 standard deviations from the mean) as stated in the chart above, (ii) the servicer makes timely and accurate filings to true-up the securitization charges annually, (iii) electric customers remit all securitization charges 30 days after such charges are billed, (iv) the securitization bonds are issued on June 29, 2023, (v) there is no acceleration of the final maturity date of the securitization bonds, and (vi) operating expenses are equal to projections. There can be no assurance that the weighted average lives of the securitization bonds will be as shown above.
Subject to the terms and conditions in the underwriting agreement among the Issuing Entity, SIGECO and the underwriters, for whom Barclays Capital Inc. and Citigroup Global Markets Inc. are acting as representatives, the Issuing Entity has agreed to sell to the underwriters, and the underwriters have severally agreed to purchase, the principal amount of the securitization bonds listed opposite each underwriter’s name below:
| | | | | | | | |
Underwriter | | Tranche A-1 | | | Tranche A-2 | |
Barclays Capital Inc. | | $ | 118,250,000 | | | $ | 69,548,000 | |
Citigroup Global Markets Inc. | | | 86,000,000 | | | | 50,580,000 | |
Drexel Hamilton, LLC | | | 10,750,000 | | | | 6,322,000 | |
| | $ | 215,000,000 | | | $ | 126,450,000 | |
The underwriters may allow, and dealers may reallow, a discount not to exceed the percentage listed below for each tranche of the securitization bonds.
| | | | | | | | |
| | | Selling
Concession | | | Reallowance
Discount | |
Tranche A-1 | | | 0.240 | % | | | 0.120 | % |
Tranche A-2 | | | 0.240 | % | | | 0.120 | % |
After the initial public offering, the public offering prices, selling concessions and reallowance discounts may change.
SIGECO and the Issuing Entity have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents SIGECO and the Issuing Entity have filed with the SEC for more complete information about the Issuing Entity and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, SIGECO, the Issuing Entity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling SIGECO at 1-812-491-4000, Barclays Capital Inc. toll-free at 1-888-603-5847 or Citigroup Global Markets Inc. toll-free at 1-800-831-9146.
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