Published on 10/28/2015 in the Prospect News Municipals Daily.
New Issue: Tennessee hits market with $385.59 million of general obligation bonds
By Sheri Kasprzak
New York, Oct. 28 – The State of Tennessee sold $385.59 million of series 2015 general obligation bonds, according to a pricing sheet. The offering was downsized from $416.32 million.
The bonds (Aaa/AA+/AAA) were sold through Morgan Stanley & Co. LLC.
The deal included $287,765,000 of series 2015A G.O. bonds and $97,825,000 of series 2015B refunding bonds.
The 2015A bonds are due 2016 to 2035 with 2% to 5% coupons and 0.20% to 2.80% yields.
The 2015B bonds are due 2016 to 2028 with 3% to 5% coupons and yields from 0.08% to 2.54%.
Proceeds will be used to finance statewide capital projects, retire at maturity certain commercial paper notes and refund the state’s series 2009A and 2010A G.O. bonds.
| Issuer: | State of Tennessee
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| Issue: | Series 2015 general obligation bonds
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| Amount: | $385.59 million
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| Type: | Negotiated
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| Underwriters: | Morgan Stanley & Co. LLC (lead), BofA Merrill Lynch, Piper Jaffray & Co. and Raymond James/Morgan Keegan (co-managers)
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| Ratings: | Moody’s: Aaa
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| Standard & Poor’s: AA+
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| Fitch: AAA
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 18
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| $287,765,000 series 2015A G.O. bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
|
| $14,385,000 | 2016 | Serial | 2% | 101.263 | 0.20%
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| $14,385,000 | 2017 | Serial | 4% | 105.926 | 0.50%
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| $14.39 million | 2018 | Serial | 5% | 111.434 | 0.725
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| $14.39 million | 2019 | Serial | 5% | 114.857 | 0.91%
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| $14.39 million | 2020 | Serial | 5% | 117.724 | 1.12%
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| $14.39 million | 2021 | Serial | 5% | 120.088 | 1.33%
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| $14.39 million | 2022 | Serial | 5% | 122.023 | 1.53%
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| $14.39 million | 2023 | Serial | 5% | 123.241 | 1.76%
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| $14.39 million | 2024 | Serial | 5% | 124.755 | 1.90%
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| $14.39 million | 2025 | Serial | 5% | 126.235 | 2.01%
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| $14.39 million | 2026 | Serial | 5% | 124.935 | 2.14%
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| $14.39 million | 2027 | Serial | 5% | 123.847 | 2.25%
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| $14.39 million | 2028 | Serial | 5% | 122.771 | 2.36%
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| $14.39 million | 2029 | Serial | 5% | 121.898 | 2.45%
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| $14.39 million | 2030 | Serial | 5% | 121.225 | 2.52%
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| $14,385,000 | 2031 | Serial | 5% | 120.556 | 2.59%
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| $14,385,000 | 2032 | Serial | 5% | 119.986 | 2.65%
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| $14,385,000 | 2033 | Serial | 5% | 119.513 | 2.70%
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| $14,385,000 | 2034 | Serial | 5% | 119.043 | 2.75%
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| $14,385,000 | 2035 | Serial | 5% | 118.575 | 2.80%
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| $97,825,000 series 2015B refunding bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
|
| $1 million | 2016 | Serial | 5% | 100.997 | 0.08%
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| $8,335,000 | 2018 | Serial | 4% | 108.762 | 0.72%
|
| $8,365,000 | 2019 | Serial | 5% | 114.857 | 0.91%
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| $8.44 million | 2020 | Serial | 5% | 117.724 | 1.12%
|
| $8,525,000 | 2021 | Serial | 5% | 120.088 | 1.33%
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| $8.61 million | 2022 | Serial | 5% | 122.023 | 1.53%
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| $8,695,000 | 2024 | Serial | 5% | 124.755 | 1.90%
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| $8.79 million | 2026 | Serial | 5% | 124.935 | 2.14%
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| $22.98 million | 2027 | Serial | 3% | 104.281 | 2.50%
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| $14,085,000 | 2028 | Serial | 4% | 112.482 | 2.54%
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