New Issue: Maryland brings to market $1.15 billion loan general obligation bonds

By Sheri Kasprzak

New York, July 23 – The State of Maryland sold $1,149,715,000 of series 2014 state and local facilities loan general obligation bonds, according to a pricing sheet. The offering was upsized from $879,745,000.

The deal included $50,385,000 of series 2014A tax-exempt bonds, $449,615,000 of series 2014B tax-exempt bonds and $649,715,000 of series 2014C tax-exempt refunding bonds.

The 2014A bonds are due 2017 to 2020 with 2% to 5% coupons and 0.56% to 1.49% yields. The 2014B bonds are due 2017 to 2018 and 2020 to 2029 with 3% to 5% coupons and yields from 0.55% to 3.05%. The 2014C bonds are due 2020 to 2024 with 5% to 5.25% coupons and 1.43% to 2.17% yields.

The bonds (Aaa/AAA/AAA) were sold on both a competitive and negotiated basis. Citigroup Global Markets Inc. was the senior manager for the 2014A bonds. J.P. Morgan Securities LLC took the series 2014B bonds at a 2.6535% true interest cost. Morgan Stanley & Co. LLC won the series 2014C bonds at a 1.8821% TIC.

Proceeds will be used to acquire and construct state facilities, as well as to make loans to local and state government entities for capital projects.

Issuer:	State of Maryland
Issue:	Series 2014 state and local facilities loan general obligation bonds
Amount:	$1,149,715,000
Type:	Negotiated and Competitive
Underwriters:	Citigroup Global Markets Inc. (lead for 2014A); BofA Merrill Lynch, J.P. Morgan Securities LLC, M&T Securities Inc. and Siebert Brandford Shank & Co. LLC (co-senior managers for series A); Jefferies & Co., Loop Capital Markets LLC, Morgan Stanley & Co. LLC, Ramirez & Co. Inc., Raymond James/Morgan Keegan and RBC Capital Markets LLC (co-managers for 2014A); J.P. Morgan Securities LLC (for 2014B); Morgan Stanley & Co. LLC (for 2014C)
True interest cost:	2.6535% (for 2014B), 1.8821% (for 2014C)
Ratings:	Moody’s: Aaa
	Standard & Poor’s: AAA
	Fitch: AAA
Pricing date:	July 23
Settlement date:	Aug. 5
$50,385,000 series 2014A tax-exempt bonds
Amount	Maturity	Type	Coupon	Price	Yield
$3.76 million	2017	Serial	2%	104.262	0.56%
$950,000	2017	Serial	3%	107.222	0.56%
$1.62 million	2017	Serial	4%	110.182	0.56%
$1.25 million	2018	Serial	2%	104.3	0.90%
$5,365,000	2018	Serial	3%	108.209	0.90%
$350,000	2018	Serial	4%	112.119	0.90%
$545,000	2018	Serial	5%	116.028	0.90%
$6.69 million	2019	Serial	3%	108.438	1.25%
$13.09 million	2019	Serial	4%	113.26	1.25%
$11,895,000	2019	Serial	5%	118.082	1.25%
$1.11 million	2020	Serial	4%	114.329	1.49%
$3.76 million	2020	Serial	5%	120.038	1.49%
$449,615,000 series 2014B tax-exempt bonds
Amount	Maturity	Type	Coupon	Price	Yield
$22.49 million	2017	Serial	5%	113.173	0.55%
$22,635,000	2018	Serial	5%	116.114	0.88%
$28,095,000	2020	Serial	5%	120.102	1.48%
$34,645,000	2021	Serial	5%	121.512	1.72%
$36,425,000	2022	Serial	5%	122.544	1.94%
$38.29 million	2023	Serial	5%	121.226	2.10%
$40,255,000	2024	Serial	5%	120.98	2.13%
$42,105,000	2025	Serial	5%	120.41	2.20%
$43.6 million	2026	Serial	5%	119.601	2.30%
$45,155,000	2027	Serial	4%	109.436	2.68%
$47 million	2028	Serial	3%	100	3.00%
$48.92 million	2029	Serial	3%	99.401	3.05%
$649,715,000 series 2014C tax-exempt refunding bonds
Amount	Maturity	Type	Coupon	Price	Yield
$66,245,000	2020	Serial	5.25%	121.85	1.43%
$201,915,000	2021	Serial	5%	121.806	1.68%
$161.67 million 2022	Serial	5%	122.96	1.89%
$184,385,000	2023	Serial	5%	124.012	2.06%
$35.5 million	2024	Serial	5%	125.291	2.17%

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