New Issue: Illinois highway sells $500 million Build America Bonds to yield 5.293%-6.184%

By Sheri Kasprzak

New York, May 12 - The Illinois State Toll Highway Authority priced $500 million in series 2009 toll highway senior priority revenue bonds, said Joelle McGinnis, spokeswoman for the authority.

The Build America Bonds (Aa3/AA-/) were sold through Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. The co-managers were Cabrera Capital Markets LLC, Morgan Keegan & Co. Inc., Jackson Securities Inc., Raymond James & Associates Inc., J.P. Morgan Securities Inc., RBC Capital Markets, Loop Capital Markets LLC and Robert W. Baird & Co.

The sale included $100 million in 2009A bonds, which are due 2024, and $400 million in 2009B bonds, which are due 2034. The 2024 bonds have a 5.293% coupon, priced at par, and the 2034 bonds have a 6.184% coupon, also priced at par.

The true interest cost for the 2024 bonds is 3.44% and 4.02% for the 2034 bonds.

Proceeds will be used for capital improvements.

Issuer:	Illinois State Toll Highway Authority
Issue:	Series 2009 Build America Bonds
Amount:	$500 million
Type:	Negotiated
Underwriters:	Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. (lead); Cabrera Capital Markets LLC; Morgan Keegan & Co. Inc.; Jackson Securities Inc.; Raymond James & Associates Inc.; J.P. Morgan Securities Inc.; RBC Capital Markets; Loop Capital Markets LLC; and Robert W. Baird & Co. (co-managers)
Ratings:	Moody's: Aa3
	Standard & Poor's: AA-
Pricing date:	May 12
Series 2009A
Amount:	$100 million
Maturity	2024
Coupon:	5.293%
Price:	Par
TIC:	3.44%
Series 2009B
Amount:	$400 million
Maturity:	2034
Coupon:	6.184%
Price:	Par
TIC:	4.02%

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