By Cristal Cody
Tupelo, Miss., Aug. 3 - The State of Minnesota priced $865 million in three tranches of general obligation bonds (Aa1/AAA/AAA) on Tuesday, the state said in a news release to Prospect News.
The competitive sale included $635 million of series 2010A state various purpose bonds and $225 million of series 2010B state trunk highway bonds with serial maturities from 2011 through 2030 and $5 million of series 2010C taxable state bonds due Aug. 1, 2015.
The series 2010A bonds were sold at a 3.16% true interest cost to winning bidder RBC Capital Markets Corp.
The series 2010B bonds priced with a 3.12% true interest cost and were sold to Piper Jaffray & Co.
The series 2010C bonds priced with a 1.86% true interest cost. The notes were sold to Morgan Keegan & Co.
Public Resources Advisory Group was the financial adviser.
The proceeds will be used to finance programs and capital projects, including educational facilities and parks, the state trunk highway system and to develop the state's agricultural resources by financing the Rural Finance Authority's programs.
| Issuer: | State of Minnesota
|
| Issue: | General obligation bonds
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| Amount: | $865 million
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| Type: | Competitive
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| Ratings: | Moody's: Aa1
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| Standard & Poor's: AAA
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| Fitch: AAA
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| Pricing date: | Aug. 3
|
|
|
| Series 2010A bonds
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| Issue: | Series 2010A bonds
|
| Amount: | $635 million
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| Underwriter: | RBC Capital Markets Corp.
|
| Maturities: | 2011-2030
|
| True interest cost: | 3.16%
|
|
|
| Series 2010B bonds
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| Issue: | Series 2010B bonds
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| Amount: | $225 million
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| Underwriter: | Piper Jaffray & Co.
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| Maturities: | 2011-2030
|
| True interest cost: | 3.12%
|
|
|
| Series 2010C bonds
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| Issue: | Series 2010C bonds
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| Amount: | $5 million
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| Underwriter: | Barclays Capital Inc.
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| Maturities: | Aug. 1, 2015
|
| True interest cost: | 1.86%
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