Published on 12/3/2015 in the Prospect News Municipals Daily.
New Issue: Michigan Finance Authority sells $324.33 million of water system bonds
By Sheri Kasprzak
New York, Dec. 3 – The Michigan Finance Authority priced $324,325,000 of series 2015 local government program water supply system revenue bonds, according to a pricing sheet. The offering was upsized from $284,615,000.
The offering included $197.66 million of series 2015C bonds, $89.43 million of series 2015D-1 bonds and $37,235,000 of series 2015D-2 bonds.
The 2015C bonds are due 2026 to 2035 with a term bond due in 2017. The serial bonds have 5% coupons with 3.13% to 3.71% yields. The 2017 bonds have a 3% coupon priced at 102.792 to yield 1.17%.
The 2015D-1 bonds are due 2017, 2019 to 2022 and 2027 to 2035 with 3% to 5% coupons and yields from 0.95% to 3.51%.
The 2015D-2 bonds are due July 1, 2034 and have a 5% coupon priced at 110.711 to yield 3.66%.
The bonds (/A-/) were sold through Citigroup Global Markets Inc.
Proceeds will be used to purchase obligations held by the Detroit Water and Sewerage Department.
| Issuer: | Michigan Finance Authority
|
| Issue: | Series 2015 local government program water supply system revenue bonds
|
| Amount: | $324,325,000
|
| Type: | Negotiated
|
| Underwriters: | Citigroup Global Markets Inc. (lead), Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch, PNC Capital Markets LLC, Loop Capital Markets LLC and Piper Jaffray & Co. (co-managers)
|
| Rating: | Standard & Poor’s: A-
|
| Pricing date: | Dec. 3
|
| Settlement date: | Dec. 15
|
|
|
| $197.66 million series 2015C bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $500,000 | 2017 | Term | 3% | 102.792 | 1.17%
|
| $3.62 million | 2026 | Serial | 5% | 115.324 | 3.13%
|
| $7,065,000 | 2027 | Serial | 5% | 114.172 | 3.26%
|
| $7,415,000 | 2028 | Serial | 5% | 113.469 | 3.34%
|
| $5,955,000 | 2032 | Serial | 5% | 110.966 | 3.63%
|
| $21,165,000 | 2033 | Serial | 5% | 110.796 | 3.65%
|
| $74,125,000 | 2034 | Serial | 5% | 110.711 | 3.66%
|
| $5 million | 2035 | Serial | 5% | 111.994 | 3.51%
|
| $72,815,000 | 2035 | Serial | 5% | 110.287 | 3.71%
|
|
|
| $89.43 million series 2015D-1 bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $505,000 | 2017 | Serial | 3% | 103.135 | 0.95%
|
| $4.6 million | 2019 | Serial | 5% | 112.036 | 1.50%
|
| $2,005,000 | 2020 | Serial | 5% | 114.137 | 1.75%
|
| $7.12 million | 2021 | Serial | 5% | 115.726 | 1.99%
|
| $5,925,000 | 2022 | Serial | 5% | 116.514 | 2.27%
|
| $3,175,000 | 2027 | Serial | 5% | 116.4 | 3.01%
|
| $8.25 million | 2028 | Serial | 5% | 117.489 | 2.89%
|
| $9.27 million | 2029 | Serial | 5% | 114.791 | 3.19%
|
| $5,085,000 | 2030 | Serial | 5% | 113.908 | 3.29%
|
| $5.66 million | 2031 | Serial | 5% | 113.469 | 3.34%
|
| $5,985,000 | 2032 | Serial | 5% | 113.12 | 3.38%
|
| $6,405,000 | 2033 | Serial | 5% | 112.685 | 3.43%
|
| $18,915,000 | 2034 | Serial | 5% | 112.425 | 3.46%
|
| $6.53 million | 2035 | Serial | 5% | 111.994 | 3.51%
|
|
|
| $37,235,000 series 2015D-2 bonds
|
| Maturity | Type | Coupon | Price | Yield
|
| July 1, 2034 | Term | 5% | 110.711 | 3.66%
|
|
|
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