By Sheri Kasprzak
New York, Dec. 1 - The Ohio Water Development Corp. and Ohio Air Quality Development Corp. sold $80.6 million of a significant downsized offering of series 2010 pollution control revenue refunding bonds for FirstEnergy Nuclear Generation Corp., according to a pricing sheet. The organizations had intended to sell $127.1 million of the bonds for FirstEnergy.
The sale included $54.6 million of series 2010B non-AMT Ohio Water Development Corp. bonds and $26 million of series 2010B non-AMT Ohio Air Quality Development Corp. bonds. Ohio Water had intended to sell $101.1 million.
The Ohio Water bonds are due June 1, 2033 and have a 2.75% coupon priced at par. The Ohio Air Quality bonds are due June 1, 2033 and have a 3.75% coupon priced at par.
Citigroup Global Markets Inc. and Bank of America Merrill Lynch were the lead managers for the bonds (Baa2/BBB-/). The co-managers were KeyBanc Capital Markets Inc., US Bancorp, Fifth Third Securities Inc. and the Huntington Investment Co.
Proceeds will be used to refund all prior water and air bonds.
Based in Akron, Ohio, FirstEnergy Nuclear Generation is a subsidiary of energy conglomerate FirstEnergy Corp. Located in Columbus, Ohio, the water corporation provides funding to local governments for projects related to pollution control, solid waste disposal, water reclamation and other water services. The air quality corporation, based in Columbus, provides funding for clean air projects.
| Issuer: | Ohio Water Development Corp./Ohio Air Quality Development Corp./FirstEnergy Nuclear Generation Corp.
|
| Issue: | Series 2010 pollution control revenue refunding bonds
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| Amount: | $80.6 million
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| Type: | Negotiated
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| Underwriters: | Citigroup Global Markets Inc. and Bank of America Merrill Lynch (lead), KeyBanc Capital Markets Inc., US Bancorp, Fifth Third Securities Inc. and the Huntington Investment Co. (co-managers)
|
| Ratings: | Moody's: Baa2
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| Standard & Poor's: BBB-
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 3
|
|
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| $54.6 million series 2010B Ohio Water Development bonds
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| Maturity | Type | Coupon | Price
|
| June 1, 2033 | Term | 2.75% | 100
|
|
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| $26 million series 2010 Ohio Air Quality Development bonds
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| Maturity | Type | Coupon | Price
|
| June 1, 2033 | Term | 3.75% | 100
|
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