Published on 2/2/2009 in the Prospect News Municipals Daily.
New Issue: Texas Tech University prices $170.83 million in revenue refunding and improvement bonds
By Aaron Hochman-Zimmerman
New York, Feb. 2 - Texas Tech University sold a $170.825 million in revenue financing system refunding and improvement bond offer (Aa3//AA), according to Mary Williams of First Southwest Securities, the financial advisor to the deal.
Serial bonds priced with a true interest cost of 4¼% and an average coupon of 4.94%. Yields ranged from 0.54% to 5.08%.
A term bond due in 2033 priced with a coupon of 5 1/8% to yield 5¼% while a term bond due in 2038 priced with a coupon of 5¼% to yield 5.35%.
RBC Capital Markets and JPMorgan Securities Inc. acted as underwriters for the negotiated bonds. First Southwest acted as financial advisor for the deal.
The issue carries maturities from 2009 to 2028.
Proceeds from the sale will be used to acquire or improve school facilities and equipment and to refund $51.894 million of the university's commercial paper.
Texas Tech is located in Lubbock, Texas.
Issuer: Texas Tech University
Issue: Revenue financing system refunding and improvement bonds
Amount: | $170.825 million
|
Type: | Negotiated
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Underwriters: | RBC Capital Markets, JPMorgan Securities Inc.
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Average coupon: | 4.94%
|
True Interest Cost: | 4¼%
|
Call features: | At par on Feb.15, 2018 on bonds due 2020, 2021, 2022, 2023, 2024
|
Pricing date: | Feb. 2
|
Ratings: | Moody's: Aa3
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| Fitch: AA
|
|
Serial bonds
|
Maturity | Amount | Coupon | Yield | Price
|
Aug. 15, 2009 | $7.474 million | 4% | 0.54% | 101.552
|
Feb. 15, 2010 | $12.340 million | 4% | 0.68% | 103.138
|
Feb. 15, 2011 | $11.604 million | 4% | 1.55% | 104.687
|
Feb. 15, 2012 | $10.028 million | 4% | 1.78% | 106.351
|
Feb. 15, 2013 | $10.314 million | 4% | 2.00% | 107.558
|
Feb. 15, 2014 | $10.124 million | 3% | 2.31% | 103.209
|
Feb. 15, 2015 | $10.663 million | 5% | 2.50% | 113.740
|
Feb. 15, 2016 | $9.148 million | 5% | 2.73% | 114.280
|
Feb. 15, 2017 | $9.599 million | 5% | 2.97% | 114.279
|
Feb. 15, 2018 | $6.137 million | 5% | 3.23% | 113.660
|
Feb. 15, 2019 | $5.610 million | 5% | 3.47% | 112.778
|
Feb. 15, 2020 | $5.763 million | 5% | 3.75% | 110.299
|
Feb. 15, 2021 | $5.929 million | 5% | 4.05% | 107.714
|
Feb. 15, 2022 | $6.139 million | 5% | 4.26% | 105.948
|
Feb. 15, 2023 | $6.336 million | 5% | 4.47% | 104.217
|
Feb. 15, 2024 | $6.586 million | 5% | 4.63% | 102.920
|
Feb. 15, 2025 | $6.835 million | 5% | 4.79% | 101.644
|
Feb. 15, 2026 | $7.108 million | 5% | 4.92% | 100.620
|
Feb. 15, 2027 | $7.407 million | 5% | 5.02% | 99.762
|
Feb. 15, 2029 | $7.734 million | 5% | 5.08% | 99.031
|
|
Term bonds
|
Feb. 15, 2033 | $7.446 million | 5 1/8% | 5.25% | 98.304
|
Feb. 15, 2038 | $9.680 million | 5¼% | 5.35% | 98.533
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