By Cristal Cody
Tupelo, Miss., Oct. 8 - Hennepin County in Minnesota priced $15 million in capital notes on Wednesday with a 3.72% true interest cost and postponed the competitive sale of the remaining $82.445 million in bonds and certificates, a market source told Prospect News.
The $15 million series 2008E general obligation capital notes (Aaa/AAA/AAA) priced with coupons of 3.25% to 4.5% and maturities from 2009 through 2017. The yields are not reoffered.
Piper Jaffray Cos. was the winning bidder out of five bids in the competitive sale.
The county held off on pricing the $63.51 million series 2008D general obligation bonds with serial maturities from 2009 through 2028 and $18.935 million series 2008F lease revenue refunding certificates of participation with serial maturities from 2009 through 2015.
The delay was enacted in order to not overwhelm the market, which currently has shifted to more retail investors as the primary buyers, the source said.
The pricing date will be dependent on market conditions.
Proceeds will be used for library improvements, various capital improvements, costs of capital equipment, as well as for defeasing obligations under the lease and purchase option agreement between Center Hospital and the county.
Proceeds will also be used to redeem the series 1998 lease revenue refunding certificates of participation's serial maturities from 2009 through 2015, which are callable on Nov. 15, and the series 1998B general obligation bonds' serial maturities from 2009 through 2019, which are callable on Dec. 1.
| Issuer: | Hennepin County, Minnesota
|
| Issue: | General obligation capital notes
|
| Amount: | $15 million
|
| Type: | Competitive
|
| True interest cost: | 3.72%
|
| Coupons: | 3.25%-4.5%
|
| Maturities: | 2009-2017
|
| Underwriter: | Piper Jaffray Cos.
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AAA
|
| Pricing date: | Oct. 8
|
| Settlement date: | Oct. 22
|
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