Published on 3/11/2015 in the Prospect News Municipals Daily.
New Issue: Tobacco Settlement, R.I., brings $621.1 million of asset-backed bonds
By Sheri Kasprzak
New York, March 11 – The Tobacco Settlement Financing Corp. sold $621,105,000 of series 2015 tobacco settlement asset-backed bonds, according to a pricing sheet.
The deal included $317.46 million of series 2015A tax-exempt bonds, $14,755,000 of series 2015A taxable bonds and $288.89 million of series 2015B bonds.
The 2015A tax-exempt bonds are due 2016 to 2030 with term bonds due in 2035 and 2040. The serial coupons range from 3% to 5% with 0.46% to 3.81% yields. The 2035 bonds have a 5% coupon priced at 107.521 to yield 4.09%, and the 2040 bonds have a 5% coupon priced at 105.386 to yield 4.34%.
The 2015A taxables are due 2015 to 2016 and have a 0.59% and a 0.8% coupon respectively, both priced at par.
The 2015B bonds are due 2041, 2045 and 2050. The 2041 bonds have a 2.25% coupon priced at par. The 2045 bonds have a 4.5% coupon priced at 97.97 to yield 4.625%, and the 2050 bonds have a 5% coupon priced at 101.591 to yield 4.8%.
The bonds were sold through Citigroup Global Markets Inc. and BofA Merrill Lynch.
Proceeds will be used to refund all of the corporation’s series 2002A bonds.
| Issuer: | Tobacco Settlement Financing Corp.
|
| Issue: | Series 2015 tobacco settlement asset-backed bonds
|
| Amount: | $621,105,000
|
| Type: | Negotiated
|
| Underwriters: | Citigroup Global Markets Inc. and BofA Merrill Lynch (lead), Janney Montgomery Scott LLC, Oppenheimer & Co. and Raymond James/Morgan Keegan (co-managers)
|
| Pricing date: | March 11
|
| Settlement date: | March 19
|
|
|
| $317.46 million series 2015A bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $1.4 million | 2016 | Serial | 3% | 103.035 | 0.46%
|
| $11,335,000 | 2017 | Serial | 4% | 106.872 | 0.84%
|
| $10.22 million | 2018 | Serial | 4% | 108.532 | 1.27%
|
| $10.58 million | 2019 | Serial | 5% | 113.755 | 1.60%
|
| $11.02 million | 2020 | Serial | 5% | 115.653 | 1.83%
|
| $11,505,000 | 2021 | Serial | 5% | 116.899 | 2.08%
|
| $12.04 million | 2022 | Serial | 5% | 116.95 | 2.42%
|
| $12,635,000 | 2023 | Serial | 5% | 116.893 | 2.69%
|
| $13.29 million | 2024 | Serial | 5% | 117.287 | 2.85%
|
| $14.02 million | 2025 | Serial | 5% | 117.554 | 2.99%
|
| $14.81 million | 2026 | Serial | 5% | 115.366 | 3.22%
|
| $15,325,000 | 2027 | Serial | 5% | 113.503 | 3.42%
|
| $14.9 million | 2028 | Serial | 5% | 112.13 | 3.57%
|
| $14.53 million | 2029 | Serial | 5% | 110.508 | 3.75%
|
| $14,125,000 | 2030 | Serial | 5% | 109.974 | 3.81%
|
| $68.11 million | 2035 | Term | 5% | 107.521 | 4.09%
|
| $67,615,000 | 2040 | Term | 5% | 105.386 | 4.34%
|
|
|
| $14,755,000 series 2015A taxable bonds
|
| Amount | Maturity | Type | Coupon | Price
|
| $5 million | 2015 | Serial | 0.59% | 100
|
| $9,755,000 | 2016 | Serial | 0.80% | 100
|
|
|
| $288.89 million series 2015B bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $81,795,000 | 2041 | Term | 2.25% | 100 | 2.25%
|
| $85.88 million | 2045 | Term | 4.5% | 97.97 | 4.625%
|
| $121,215,000 | 2050 | Term | 5% | 101.591 | 4.80%
|
|
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