New Issue: Michigan prices $189 million G.O. refunding bonds in two tranches

By Cristal Cody

Eureka Springs, Ark., June 27 – The State of Michigan sold $189,035,000 of general obligation refunding bonds (Aa1/AA-/AA) in two parts, according to an official statement.

The deal included $129,085,000 of series 2016A G.O. school loan refunding bonds and $59.95 million of series 2016B G.O. environmental program refunding bonds.

BofA Merrill Lynch and Wells Fargo Securities LLC managed the negotiated offering.

Proceeds will be used to refund outstanding school loan prior bonds and outstanding environmental prior bonds.

Issuer:	State of Michigan
Issue:	General obligation refunding bonds
Amount:	$189,035,000
Type:	Negotiated
Bookrunners:	BofA Merrill Lynch and Wells Fargo Securities LLC
Ratings:	Moody’s: Aa1
	S&P: AA-
	Fitch: AA
Pricing date:	June 23
Settlement date:	June 30
$129,085,000 series 2016A G.O. school loan refunding bonds
Maturity	Amount	Type	Price	Coupon	Yield
2016	$2.97 million	Serial	Par	0.6%	0.6%
2017	$2,635,000	Serial	Par	0.99%	0.99%
2018	$2,665,000	Serial	Par	1.151%	1.151%
2019	$2.7 million	Serial	Par	1.375%	1.375%
2020	$36,085,000	Serial	Par	1.579%	1.579%
2021	$57,895,000	Serial	Par	1.779%	1.779%
2022	$24,135,000	Serial	Par	1.966%	1.966%
$59.95 million series 2016B G.O. environmental program refunding bonds
Maturity	Amount	Type	Price	Coupon	Yield
2021	$10.88 million	Serial	119.754	5%	1.17%
2022	$11.24 million	Serial	122.364	5%	1.31%
2023	$11.72 million	Serial	124.698	5%	1.44%
2024	$12.76 million	Serial	126.879	5%	1.55%
2025	$13.35 million	Serial	119.967	4%	1.68%

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