By Sheri Kasprzak
New York, June 25 - The Berks County Municipal Authority of Pennsylvania sold $251.84 million of series 2012 revenue bonds for the Reading Hospital and Medical Center, according to an official statement.
The offering included $160,065,000 of series 2012A fixed-rate bonds and $91,775,000 of series 2012B variable-rate bonds.
The 2012A bonds are due 2040, 2041 and 2044. The 2040 bonds have a 5% coupon to yield 4.23%. The 2041 bonds have a split maturity with a 4.25% coupon to yield 4.5% and a 4.5% coupon to yield 4.5%. The 2044 bonds have a 5% coupon to yield 4.28%.
The 2012B bonds are due Nov. 1, 2039, and bear interest initially at an index mode, which is equal to the Sifma average index rate for each index rate accrual period plus a spread of 1.5% per year. The bonds feature a mandatory tender on July 1, 2022.
The bonds (Aa3/AA/AA-) were sold on a negotiated basis. The lead managers for the 2012A bonds were Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets LLC. The senior managers for the 2012B bonds were Morgan Stanley & Co. LLC and RBC Capital Markets LLC.
Proceeds will be used to construct, equip, acquire and install new and existing buildings operated by Reading Hospital and Medical Center, including emergency care facilities, oncology buildings and cardiology services, as well as to refund the medical center's series 2002 revenue bonds.
| Issuer: | Berks County Municipal Authority/Reading Hospital and Medical Center
|
| Issue: | Series 2012 revenue bonds
|
| Amount: | $251.84 million
|
| Type: | Negotiated
|
| Underwriters: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets LLC (lead for 2012A), Morgan Stanley & Co. LLC and RBC Capital Markets LLC (lead for 2012B)
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA
|
| Fitch: AA-
|
| Pricing date: | June 19
|
| Settlement date: | June 28
|
|
|
| $160,065,000 series 2012A fixed-rate bonds
|
| Amount | Maturity | Type | Coupon | Yield
|
| $35,245,000 | 2040 | Term | 5% | 4.23%
|
| $18.98 million | 2041 | Term | 4.25% | 4.50%
|
| $10 million | 2041 | Term | 4.5% | 4.50%
|
| $95.84 million | 2044 | Term | 5% | 4.28%
|
|
|
| $91,775,000 series 2012B variable-rate bonds
|
| Maturity | Type | Coupon | Price | Call
|
| Nov. 1, 2039 | Term | Index Mode | 99.125 | Mandatory tender on July 1, 2022
|
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