New Issue: Ohio prices $1.73 billion of upsized turnpike revenue bonds

By Sheri Kasprzak

New York, July 31 - The State of Ohio sold $1,731,405,000 of series 2013A turnpike revenue bonds, according to a pricing sheet.

The deal included $73,495,000 of series 2013A senior-lien revenue bonds (Aa3/AA-/AA), $709.27 million of series 2013A-1 infrastructure bonds (A1/A+/A+), $700.45 million of series 2013A-2 capital appreciation bonds (A1/A+/A+) and $248.19 million of series 2013A-3 junior-lien convertible capital appreciation bonds (A1/A+/A+).

The 2013A bonds are due in 2048 and have a 5% coupon priced at 101.435 to yield 4.81%.

The 2013A-1 bonds are due 2019 to 2020 and 2023 to 2033 with term bonds due in 2039 and 2048. The serial coupons range from 5% to 5.25% with 2% to 4.71% yields. The 2039 bonds have a 5.25% coupon priced at 103.169 to yield 4.83%. The 2048 bonds have a 5% coupon priced at 99.187 to yield 5.05%.

The 2013A-2 bonds are due 2036 to 2043 with 0% coupons and yields from 6.09% to 6.71%.

The 2013A-3 bonds are due 2034 to 2036 with 0% coupons and 5.7% to 5.8% yields.

Citigroup Global Markets Inc. was the senior manager.

Proceeds will be used to finance capital improvements to the turnpike system.

Issuer:	State of Ohio
Issue:	Series 2013A turnpike revenue bonds
Amount:	$1,731,405,000
Type:	Negotiated
Underwriters:	Citigroup Global Markets Inc. (lead), J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Fidelity Capital Markets LLC, Huntington Investment Co., Jefferies & Co., KeyBanc Capital Markets LLC, Loop Capital Markets LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Rice Financial Products Co., Stifel, Nicolaus & Co. and Wells Fargo Securities LLC (co-managers)
Pricing date:	July 31
Settlement date:	Aug. 15
$73,495,000 series 2013A senior-lien revenue bonds (Aa3/AA-/AA)
Maturity	Type	Coupon	Price	Yield
2048	Term	5%	101.435	4.81%
$709.27 million series 2013A-1 infrastructure bonds (A1/A+/A+)
Amount	Maturity	Type	Coupon	Price	Yield
$8.07 million	2019	Serial	5%	115.551	2.00%
$5 million	2020	Serial	5%	115.236	2.45%
$4,035,000	2023	Serial	5%	113.418	3.34%
$16.12 million	2024	Serial	5%	111.18	3.60%
$20.08 million	2025	Serial	5%	109.244	3.83%
$12,925,000	2026	Serial	5%	107.675	4.02%
$13.23 million	2027	Serial	5%	106.294	4.19%
$16,735,000	2028	Serial	5%	105.173	4.33%
$30 million	2029	Serial	5.25%	106.302	4.43%
$30 million	2030	Serial	5.25%	105.508	4.53%
$35 million	2031	Serial	5.25%	104.957	4.60%
$35 million	2032	Serial	5.25%	104.409	4.67%
$30 million	2033	Serial	5.25%	104.097	4.71%
$113,075,000	2039	Term	5.25%	103.169	4.83%
$340 million	2048	Term	5%	99.187	5.05%
$700.45 million series 2013A-2 capital appreciation bonds (A1/A+/A+)
Amount	Maturity	Type	Coupon	Price	Yield
$53,735,000	2036	Serial	0%	25.929	6.09%
$97.23 million	2037	Serial	0%	24.252	6.12%
$4.25 million	2037	Serial	0%	21.84	6.58%
$88,315,000	2038	Serial	0%	22.671	6.15%
$5.25 million	2038	Serial	0%	20.326	6.61%
$3.55 million	2040	Serial	0%	17.574	6.67%
$109,095,000	2040	Serial	0%	19.777	6.21%
$109,345,000	2041	Serial	0%	18.505	6.23%
$3.75 million	2041	Serial	0%	16.371	6.69%
$112.98 million	2042	Serial	0%	17.404	6.23%
$106.45 million	2043	Serial	0%	16.321	6.24%
$6.5 million	2043	Serial	0%	14.27	6.71%
$248.19 million series 2013A-3 junior-lien convertible capital appreciation bonds (A1/A+/A+)
Amount	Maturity	Type	Coupon	Price	Yield
$105,235,000	2034	Serial	0%	58.629	5.70%
$96.49 million	2035	Serial	0%	58.359	5.75%
$46,465,000	2036	Serial	0%	58.09	5.80%

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