Howard Hughes Medical Institute plans two bond issues totaling $161.5 million

By Cristal Cody

Springdale, Ark., Jan. 17 - Howard Hughes Medical Institute expects to price $161.5 million variable rate bonds in February and April, the organization's treasurer said Thursday.

The Maryland Economic Development Corp. plans to price $85 million in series 2008A bonds for the nonprofit institute Feb. 21.

The institute also plans to issue series 2008B refunding bonds of $76.5 million in early April, Ed Palmerino, vice president of finance and treasurer for Howard Hughes Medical Institute, said in an interview.

The underwriter on the 2008A series is Citibank, and the underwriter on the 2008B series is Lehman Brothers, he said.

The maturity series has not been determined, but it will be up to 35 years for both bonds, Palmerino said.

Because the bonds are variable rate, the interest rates will be set weekly.

Moody's Investors Service assigned a rating Wednesday of Aaa/VMIG1 to the series 2008A multi-modal revenue bonds.

The medical research organization plans to use the proceeds from the 2008A bonds to renovate and expand the administrative headquarters offices in Chevy Chase, Md. Proceeds from the 2008B bonds will be used to refund existing debt on the headquarters from the institute's series 1990 bonds.

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