By Sheri Kasprzak
New York, Jan. 8 - The Indiana Finance Authority priced $271.275 million in series 2009 refunding revenue bonds for Duke Energy Indiana Inc. on Thursday, said Tom Shiel, spokesman for Duke Energy.
The offering included $44.025 million in series 2009A-1, $23 million in series 2009A-2 and $77.125 million in series 2009A-3 bonds, all of which bear interest at the weekly rate mode. The initial rate for the weekly rate bonds is 0.7%. The deal also included $77.125 million in series 2009A-4 bonds and $50 million in series 2009A-5 bonds, both of which bear interest at the daily rate. The initial rate for those bonds is 0.5%.
The bonds (Aaa/VMIG1/AAA/A-1+/) priced at par.
KeyBanc Capital Markets was the lead manager for the 2009A-1 and 2009A-3 bonds, Morgan Stanley was the lead manager for the 2009A-2 bonds, Banc of America Securities LLC was the lead manager for the 2009A-4 bonds and Wells Fargo Brokerage Services was the lead for the 2009A-5 bonds.
Proceeds from the 2009A-1 bonds will be used to refund the Indiana Development Finance Authority's series 2000A environmental refunding revenue bonds, and proceeds from the 2009A-2 bonds will be used to refund the authority's series 2002A refunding revenue bonds.
Proceeds from the 2009A-3 bonds will be used to refund the authority's series 2004C revenue refunding bonds, and the 2009A-4 bonds will be used to refund the authority's series 2004B revenue refunding bonds.
The proceeds from the 2009A-5 bonds will be used to refund the authority's series 2005C revenue refunding bonds. The bonds being refunded are tax-exempt auction-rate securities.
| Issuer: | Indiana Finance Authority/Duke Energy Indiana Inc.
|
| Issue: | Series 2009 refunding revenue bonds
|
| Amount: | $271.275 million
|
| Type: | Negotiated
|
| Underwriters: | KeyBanc Capital Markets (for 2009A-1 and 2009A-3); Morgan Stanley & Co. Inc. (for 2009A-2); Banc of America Securities LLC (for 2009A-4); Wells Fargo Brokerage Services (for 2009A-5)
|
| Ratings: | Moody's: Aaa/VMIG1
|
| Standard & Poor's: AAA/A-1+
|
| Pricing date: | Jan. 8
|
|
|
| Series | Coupon | Price | Mode
|
| 2009A-1 | 0.7% | Par | Weekly
|
| 2009A-2 | 0.7% | Par | Weekly
|
| 2009A-3 | 0.7% | Par | Weekly
|
| 2009A-4 | 0.5% | Par | Daily
|
| 2009A-5 | 0.5% | Par | Daily
|
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