Published on 2/26/2015 in the Prospect News Municipals Daily.
New Issue: Houston brings to market $132.52 million of hotel occupancy tax bonds
By Sheri Kasprzak
New York, Feb. 26 – The City of Houston sold $132,515,000 of series 2015 hotel occupancy tax and special revenue and refunding bonds, according to a pricing sheet.
The bonds (A2/A-/) were sold through senior manager Hutchinson, Shockey, Erley & Co.
The bonds are due 2015 to 2035 with term bonds due in 2040 and 2044. The serial coupons range from 2% to 5% with 0.22% to 3.58% yields. The 2040 bonds have a 5% coupon priced at 110.79 to yield 3.64%, and the 2044 bonds have a 4% coupon priced at 99.142 to yield 4.05%.
Proceeds will be used to refund a portion of the city’s series 2011B HOT bonds and refund the city’s series A HOT and parking revenue flexible rate notes, as well as to replace borrowing capacity under an agreement with Regions Capital Advantage Inc. and Regions Commercial Equipment Finance LLC.
| Issuer: | City of Houston
|
| Issue: | Series 2015 hotel occupancy tax and special revenue and refunding bonds
|
| Amount: | $132,515,000
|
| Type: | Negotiated
|
| Underwriters: | Hutchinson, Shockey, Erley & Co. (lead), Piper Jaffray & Co. and Blaylock Beal Van LLC (co-managers)
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A-
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 19
|
|
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $230,000 | 2015 | Serial | 2% | 100.8 | 0.22%
|
| $75,000 | 2016 | Serial | 2% | 101.872 | 0.70%
|
| $1,255,000 | 2017 | Serial | 4% | 107.368 | 0.95%
|
| $4.54 million | 2018 | Serial | 4% | 109.115 | 1.29%
|
| $4,745,000 | 2019 | Serial | 5% | 114.825 | 1.54%
|
| $4.71 million | 2020 | Serial | 5% | 116.483 | 1.81%
|
| $5.16 million | 2021 | Serial | 5% | 117.737 | 2.05%
|
| $6,345,000 | 2022 | Serial | 5% | 118.012 | 2.35%
|
| $6.77 million | 2023 | Serial | 5% | 118.433 | 2.56%
|
| $7.3 million | 2024 | Serial | 5% | 118.794 | 2.73%
|
| $7.8 million | 2025 | Serial | 5% | 117.428 | 2.88%
|
| $5,115,000 | 2026 | Serial | 5% | 116.349 | 3.00%
|
| $5,715,000 | 2027 | Serial | 5% | 115.105 | 3.14%
|
| $5.15 million | 2028 | Serial | 5% | 114.314 | 3.23%
|
| $5,459,000 | 2029 | Serial | 5% | 113.703 | 3.30%
|
| $5,495,000 | 2030 | Serial | 5% | 113.269 | 3.35%
|
| $5,855,000 | 2031 | Serial | 5% | 112.837 | 3.40%
|
| $6,315,000 | 2032 | Serial | 5% | 112.321 | 3.46%
|
| $5,895,000 | 2033 | Serial | 5% | 112.15 | 3.48%
|
| $2.72 million | 2034 | Serial | 5% | 111.637 | 3.54%
|
| $2.86 million | 2035 | Serial | 5% | 111.298 | 3.58%
|
| $16,645,000 | 2040 | Term | 5% | 110.79 | 3.64%
|
| $16,325,000 | 2044 | Term | 4% | 99.142 | 4.05%
|
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