By Sheri Kasprzak
New York, May 20 - The Commonwealth of Pennsylvania priced $1 billion of second series 2010 general obligation bonds on Wednesday. The details were made available by official statement on Thursday.
The sale 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 2010A bonds are due 2011 to 2021 with coupons from 2% to 5% and yields from 0.31% to 3.08%.
The 2010B bonds are due 2022 to 2026 with a 2030 term bond. The coupons range from 4.5% to 4.9% with yields from 4.5% to 4.94%. The 2030 bonds have a 5.35% coupon, priced to yield 5.37%.
The bonds (Aa1/AA/AA+) will fund open space initiatives, as well as the construction, renovation and rehabilitation of capital projects, as well as 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
|
| Maturity | Type | Coupon | Yield
|
| 2011 | Serial | 2% | 0.31%
|
| 2012 | Serial | 5% | 0.70%
|
| 2013 | Serial | 5% | 1.05%
|
| 2014 | Serial | 5% | 1.39%
|
| 2015 | Serial | 5% | 1.76%
|
| 2016 | Serial | 5% | 2.14%
|
| 2017 | Serial | 5% | 2.45%
|
| 2018 | Serial | 5% | 2.65%
|
| 2019 | Serial | 5% | 2.83%
|
| 2020 | Serial | 5% | 2.98%
|
| 2021 | Serial | 5% | 3.08%
|
|
|
| Series 2010B
|
| Maturity | Type | Coupons | Price
|
| 2022 | Serial | 4.5% | 4.5%
|
| 2023 | Serial | 4.6% | 4.64%
|
| 2024 | Serial | 4.7% | 4.74%
|
| 2025 | Serial | 4.8% | 4.84%
|
| 2026 | Serial | 4.9% | 4.94%
|
| 2030 | Term | 5.35% | 5.37%
|
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