New Issue: Massachusetts Development sells $317.6 million Partners Healthcare System bonds

By Sheri Kasprzak

New York, Jan. 22 – The Massachusetts Development Finance Agency sold $317,615,000 of series 2015O revenue bonds for Partners Healthcare System Inc., according to a pricing sheet.

The bonds (Aa3/AA/AA) were sold through J.P. Morgan Securities LLC, which was the senior manager for the series 2015O-1 and 2015O-2 bonds and the sole underwriter for the 2015O-3 bonds.

The deal included $150 million of series 2015O-1 bonds, $117,615,000 of series 2015O-2 bonds and $50 million of series 2015O-3 variable-rate bonds.

The 2015O-1 bonds are due 2024 to 2030 with term bonds due in 2040 and 2045. The serial coupons range from 3.125% to 5% with 2.09% to 3.125% yields. The 2040 bonds have a 4% coupon priced at 104.51 to yield 3.48% and a 5% coupon priced at 117.98 to yield 2.98%

The 2045 bonds have a 4% coupon priced at 103.536 to yield 3.59% and a 5% coupon priced at 117.393 to yield 3.04%.

The 2015O-2 bonds are due 2017 to 2032 with a term bond due in 2045. The serial coupons range from 3% to 5% with yields from 0.61% to 2.8%. The 2045 bonds have a 4% coupon priced at 103.536 to yield 3.59%.

The 2015O-3 bonds are due July 1, 2050 and have a 1% initial coupon priced at par.

Proceeds will be used to finance capital projects for the health care system, as well as to refund the system’s series F-5 and G-5 revenue bonds.

Issuer:	Massachusetts Development Finance Agency/Partners Healthcare System Inc.
Issue:	Series 2015O revenue bonds
Amount:	$317,615,000
Type:	Negotiated
Underwriters:	J.P. Morgan Securities LLC (lead for 2015O-1, 2015O-2, sole for 2015O-3), BofA Merrill Lynch, Barclays, BNY Capital Markets LLC, TD Securities (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC (co-managers for 2015O-1 and 2015O-2 bonds)
Ratings:	Moody’s: Aa3
	Standard & Poor’s: AA
	Fitch: AA
Pricing date:	Jan. 22
Settlement date:	Jan. 29
$150 million series 2015O-1 bonds
Amount	Maturity	Type	Coupon	Price	Yield
$2.5 million	2024	Serial	5%	124.769	2.09%
$2.5 million	2025	Serial	5%	125.843	2.21%
$2.5 million	2026	Serial	5%	124.368	2.35%
$2.5 million	2027	Serial	5%	123.224	2.46%
$5 million	2028	Serial	5%	122.194	2.56%
$5 million	2029	Serial	5%	121.581	2.62%
$2.5 million	2030	Serial	3.125%	100	3.125%
$13,135,000	2040	Term	4%	104.51	3.48%
$6,865,000	2040	Term	5%	117.98	2.98%
$62.5 million	2045	Term	4%	103.536	3.59%
$45 million	2045	Term	5%	117.393	3.04%
$117,615,000 series 2015O-2 bonds
Amount	Maturity	Type	Coupon	Price	Yield
$2,745,000	2017	Serial	3%	105.737	0.61%
$2.83 million	2018	Serial	4%	110.566	0.86%
$4.2 million	2019	Serial	5%	116.976	1.06%
$925,000	2020	Serial	3%	108.871	1.30%
$5.27 million	2020	Serial	5%	119.309	1.30%
$3,475,000	2021	Serial	4%	114.854	1.56%
$3,005,000	2021	Serial	5%	120.942	1.56%
$10,135,000	2022	Serial	5%	122.371	1.77%
$7.1 million	2023	Serial	5%	123.582	1.95%
$7.46 million	2024	Serial	5%	124.769	2.09%
$7,825,000	2025	Serial	5%	125.843	2.21%
$8.22 million	2026	Serial	5%	124.368	2.35%
$8,635,000	2027	Serial	5%	123.224	2.46%
$4,275,000	2028	Serial	5%	122.194	2.56%
$4,495,000	2029	Serial	5%	121.581	2.62%
$9,505,000	2030	Serial	5%	120.77	2.70%
$9.98 million	2031	Serial	5%	120.166	2.76%
$10.48 million	2032	Serial	5%	119.765	2.80%
$7,055,000	2045	Term	4%	103.536	3.59%
$50 million series 2015O-3 variable rate bonds
Maturity	Type	Coupon	Price
July 1, 2050	Term	1%	100

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