Texas Public Finance arranges $500 million sale of revenue notes

By Sheri Kasprzak

New York, July 31 - The Texas Public Finance Authority plans to price $500 million of series 2012 taxable class I revenue notes for the Texas Windstorm Insurance Association, according to a preliminary official statement.

The notes will be sold through Bank of America Merrill Lynch.

The notes are due Aug. 1, 2015 and have a mandatory tender date on Feb. 1, 2013. The notes initially bear interest at 1% to and including the 60th day after delivery. If the authority does not receive at least two A ratings from nationally recognized ratings agencies or the highest short-term ratings from those agencies within 60 days of the delivery date, the notes will bear interest at 2.5% from the 61st day to the mandatory tender date.

Proceeds will be used to finance the future insurance claim costs incurred by the association.

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