Published on 6/21/2012 in the Prospect News Municipals Daily.
New Issue: Detroit prices $659.78 million of water and sewerage revenue and refunding bonds
By Sheri Kasprzak
New York, June 21 - The City of Detroit sold $659.78 million of series 2012A Detroit Water and Sewerage Department sewage disposal system revenue and refunding senior lien bonds, according to a pricing sheet.
The bonds (/A+/A-) were sold through Goldman, Sachs & Co. The co-managers were BMO Capital Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Siebert Brandford Shank & Co. LLC.
The bonds are due 2014 to 2027 with term bonds due in 2032 and 2039.
The serial coupons range from 5% to 5.5%. The 2032 bonds have a 5% coupon priced at 99.373. The 2039 bonds have a split maturity with a 5% coupon priced at par and a 5.25% coupon priced at 99.285.
Proceeds will be used to make improvements, additions and extensions to the city's sewage system, as well as to refund its 2003A revenue bonds.
| Issuer: | City of Detroit/Detroit Water and Sewerage Department
|
| Issue: | Series 2012A sewage disposal system revenue and refunding senior lien bonds
|
| Amount: | $659.78 million
|
| Type: | Negotiated
|
| Underwriters: | Goldman, Sachs & Co. (lead), BMO Capital Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Siebert Brandford Shank & Co. LLC (co-managers)
|
| Ratings: | Standard & Poor's: A+
|
| Fitch: A-
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
|
|
| Amount | Maturity | Type | Coupon | Price
|
| $5.82 million | 2014 | Serial | 5% | 106.464
|
| $6,005,000 | 2015 | Serial | 5% | 108.365
|
| $8.88 million | 2016 | Serial | 5% | 111.107
|
| $6.43 million | 2017 | Serial | 5% | 110.027
|
| $9.75 million | 2018 | Serial | 5% | 111.337
|
| $19.93 million | 2019 | Serial | 5% | 108.738
|
| $13,925,000 | 2020 | Serial | 5% | 108.079
|
| $9,845,000 | 2021 | Serial | 5% | 106.958
|
| $14.86 million | 2022 | Serial | 5% | 105.98
|
| $22,275,000 | 2023 | Serial | 5% | 104.158
|
| $23.63 million | 2024 | Serial | 5.5% | 105.821
|
| $32.24 million | 2025 | Serial | 5.5% | 104.671
|
| $13.17 million | 2026 | Serial | 5.25% | 104.108
|
| $9.89 million | 2027 | Serial | 5.25% | 103.463
|
| $120,265,000 | 2032 | Term | 5% | 99.373
|
| $50 million | 2039 | Term | 5% | 100
|
| $292,865,000 | 2039 | Term | 5.25% | 99.285
|
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