Published on 8/5/2008 in the Prospect News Municipals Daily.
New Issue: Chicago Transit prices $1.94 billion revenue bonds with 5.118%-6.899% yields
By Sheri Kasprzak
New York, Aug. 5 - The Chicago Transit Authority priced $1,936,855,000 in series 2008 sales and transfer tax receipts revenue bonds, according to an official statement.
The bonds (Aa3) were sold on a negotiated basis with Morgan Stanley and Loop Capital Markets as the lead managers. The co-managers are Goldman, Sachs & Co.; Cabrera Capital Markets; Depfa First Albany; Siebert Brandford Shank & Co.; Citigroup Global Markets; Estrada Hinojosa; Grigsby & Associates; J.P. Morgan Securities Inc.; Ramirez & Co.; Rice Financial Products; and William Blair.
The sale included $1,297,175,000 in series 2008A bonds. The bonds are due 2013, 2021 and 2040. The 2013 bonds have a 5.118% coupon, the 2021 bonds have a 6.3% coupon and the 2040 bonds have a 6.899% coupon, all priced at par. The deal also includes $639.68 million in series 2008B bonds, which are due 2013, 2021 and 2040. The 2013 bonds have a 5.118% coupon, the 2021 bonds have a 6.3% coupon and the 2040 bonds have a 6.899% coupon, also priced at par.
Proceeds will be used for the authority's employee retirement plan and used to create a retiree health care trust.
| Issuer: | Chicago Transit Authority
|
| Issue: | Series 2008 sales and transfer tax receipt revenue bonds
|
| Amount: | $1,936,855,000
|
| Type: | Negotiated
|
| Underwriters: | Morgan Stanley and Loop Capital Markets (leads); Goldman, Sachs & Co., Cabrera Capital Markets, Depfa First Albany, Siebert Brandford Shank & Co., Citigroup Global Markets, Estrada Hinojosa, Grigsby & Associates, J.P. Morgan Securities Inc., Ramirez & Co., Rice Financial Products and William Blair
|
| Rating: | Moody's: Aa3
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 6
|
|
|
| Series 2008A
|
| Maturity | Type | Coupon | Price
|
| 2013 | Term | 5.118% | Par
|
| 2021 | Term | 6.3% | Par
|
| 2040 | Term | 6.899% | Par
|
|
|
| Series 2008B
|
| Maturity | Type | Coupon | Price
|
| 2013 | Term | 5.118% | Par
|
| 2021 | Term | 6.3% | Par
|
| 2040 | Term | 6.899% | Par
|
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