By Sheri Kasprzak
New York, May 19 - The Commonwealth of Pennsylvania sold on Wednesday $1 billion of series 2010 general obligation bonds in two tranches, said a term sheet and a source close to the offering.
The deal included $451.1 million of series 2010A tax-exempt bonds and $548.9 million of series 2010B Build America Bonds.
Bank of America Merrill Lynch won the series 2010A bonds with a 3.34% true interest cost, and J.P. Morgan Securities Inc. won the 2010B bonds with a 2.52% TIC, the sellside source noted.
The full details of the 2010A bonds were not immediately available Wednesday, but the bonds are due 2011 to 2021. Coupons ranged from 2% to 5%.
The 2010B bonds are due 2022 to 2026 with a 2030 term bond. The coupons range from 4.5% to 4.9%. The 2030 bonds have a 5.35% coupon, priced at 99.752.
The bonds (Aa1/AA/AA+) will fund open space initiatives, as well as the construction, renovation and rehabilitation of capital projects, in addition to the renovation of water and sewer supply systems.
| Issuer: | Commonwealth of Pennsylvania
|
| Issue: | Series 2010 general obligation bonds
|
| Amount: | $1 billion
|
| Type: | Competitive
|
| Underwriters: | Bank of America Merrill Lynch (winner for 2010A); J.P. Morgan Securities Inc. (winner for 2010B)
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA
|
| Fitch: AA+
|
| Pricing date: | May 19
|
|
|
| Series 2010A
|
| Maturities: | 2011 to 2021
|
| Coupons: | 2% to 5%
|
|
|
| Series 2010B
|
| Maturity | Type | Coupons | Price
|
| 2022 | Serial | 4.5% | 100
|
| 2023 | Serial | 4.6% | 99.611
|
| 2024 | Serial | 4.7% | 99.592
|
| 2025 | Serial | 4.8% | 99.574
|
| 2026 | Serial | 4.9% | 99.558
|
| 2030 | Term | 5.35% | 99.752
|
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