By Cristal Cody
Springdale, Ark., Feb. 27 - Orlando, Fla., held off on pricing $297.99 million tourism bonds until Thursday, but instead sold $31.82 million sales tax revenue bonds with a 5.08% true interest cost, the issuer said Wednesday.
The series 2008 state sales tax revenue bonds priced Tuesday with coupons from 3.2% to 5% with yields from 2.3% to 5.01%, said Chris McCullion, assistant treasurer for Orlando.
The bonds (Aa3/A+/AA-) have maturities from August 2008 through August 2024, with three term bonds due 2027, 2032 and 2038.
The 2027 term bond priced with a 4.75% coupon with a 5.17% yield; the 2032 term priced with a 5% coupon and 5.2% yield; and the 2038 term priced with a 5% coupon and 5.24% yield.
Jackson Securities and Rice Financial Products Co. are the lead underwriters. Co-managers are Merrill Lynch & Co. and Wachovia Bank.
Proceeds are for the basketball arena at a new events center.
The city had planned on Wednesday to price $181.76 million series 2008A bonds, $42.36 million series 2008B bonds and $73.87 million series 2008C bonds.
The series 2008A senior tourist development tax revenue bonds, series 2008B second lien subordinate tourist development tax revenue bonds, and series 2008C third lien subordinate tourist development tax revenue bonds are insured under a financial guaranty insurance policy by Assured Guaranty Corp. (Aaa).
Citi is the senior book runner for series 2008A bonds, and Goldman, Sachs & Co. is the book-running manager for series 2008B and 2008C bonds.
| Issuer: | Orlando, Fla.
|
| Issue: | State sales tax revenue bonds
|
| Type: | Negotiated
|
| Amount: | $31.82 million
|
| True interest cost: | 5.08%
|
| Coupons: | 3.2% to 5%
|
| Yields: | 2.3% to 5.01%
|
| 2027 term bond: | 4.75% coupon, 5.17% yield
|
| 2032 term bond: | 5% coupon, 5.2% yield
|
| 2038 term bond: | 5% coupon, 5.24% yield
|
| Maturities: | 2008 to 2024; term bonds due 2027, 2032, and 2038
|
| Underwriter: | Jackson Securities and Rice Financial Products (lead)
|
| Ratings: | Moody's: Aa2
|
| S&P: A+
|
| Fitch: AA-
|
| Pricing date: | Feb. 26
|
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