By Cristal Cody
Springdale, Ark., July 25 - Austin, Texas, priced $175 million electric utility system revenue refunding bonds with a 5.2367% true interest cost, the issuer said Friday.
The series 2008A bonds priced on Thursday with 4% to 6% coupons to yield 2.82% to 5.33%, said Art Alfaro, city treasurer.
The bonds (A1/A+/AA-) have serial maturities from 2010 through 2038.
The city originally had planned to purchase an insurance policy from Assured Guaranty Corp. but removed the policy late Wednesday after news that Moody's Investors Service may downgrade the insurer.
Merrill Lynch & Co., the winning bidder in the competitive sale, insured some of the later maturities through Berkshire Hathaway, Alfaro said.
Proceeds will be used to refund Austin's outstanding commercial paper, which will allow the city to restore the available capital under its commercial paper note program and sell additional notes.
Issuer: | Austin, Texas
|
Issue: | Series 2008A electric utility system revenue refunding bonds
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Total amount: | $175 million
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Type: | Competitive
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True interest cost: | 5.2367%
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Coupons: | 4%-6%
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Yields: | 2.82%-5.33%
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Maturities: | 2010-2038
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Underwriter: | Merrill Lynch & Co.
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Ratings: | Moody's: A1
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| Standard & Poor's: A+
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| Fitch: AA-
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Pricing date: | July 24
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Settlement date: | Aug. 20
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