Published on 2/11/2016 in the Prospect News Municipals Daily.
New Issue: Cleveland brings $144.36 million of airport system revenue bonds
By Sheri Kasprzak
New York, Feb. 11 – The City of Cleveland sold $144,355,000 of series 2016 airport system revenue bonds on Wednesday, according to a term sheet.
The offering included $108.12 million of series 2016A non-AMT bonds and $36,235,000 of series 2016B non-AMT forward delivery bonds.
The 2016A bonds are due 2018 to 2031 with 5% coupons and yields from 0.85% to 2.78%.
The 2016B bonds are due 2022 to 2024 with coupons of 5% and yields from 2.15% to 2.58%.
The bonds (Baa1/A-/BBB+) were sold through senior managers Stifel, Nicolaus & Co. Inc. and J.P. Morgan Securities LLC.
Proceeds will be used to refund the city’s series 2000C revenue bonds.
| Issuer: | City of Cleveland, Ohio
|
| Issue: | Series 2016 airport system revenue bonds
|
| Amount: | $144,355,000
|
| Type: | Negotiated
|
| Underwriters: | Stifel, Nicolaus & Co. Inc. and J.P. Morgan Securities LLC (lead), BofA Merrill Lynch, Estrada Hinojosa & Co. Inc., IFS Securities Inc., Loop Capital Markets LLC and Williams Capital Group LP (co-managers)
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Fitch: BBB+
|
| Pricing date: | Feb. 10
|
| Settlement dates: | Feb. 23 (for 2016A), Oct. 4 (for 2016B)
|
|
|
| $108.12 million series 2016A non-AMT bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $2,935,000 | 2018 | Serial | 5% | 107.622 | 0.85%
|
| $2.97 million | 2019 | Serial | 5% | 111.261 | 0.99%
|
| $3,295,000 | 2020 | Serial | 5% | 114.314 | 1.19%
|
| $3,405,000 | 2021 | Serial | 5% | 117.148 | 1.34%
|
| $3,715,000 | 2022 | Serial | 5% | 119.238 | 1.55%
|
| $8.2 million | 2023 | Serial | 5% | 120.764 | 1.77%
|
| $8.6 million | 2024 | Serial | 5% | 121.868 | 1.98%
|
| $9.2 million | 2025 | Serial | 5% | 122.867 | 2.15%
|
| $9.6 million | 2026 | Serial | 5% | 121.339 | 2.32%
|
| $10.2 million | 2027 | Serial | 5% | 120.274 | 2.44%
|
| $10.6 million | 2028 | Serial | 5% | 119.483 | 2.53%
|
| $11.3 million | 2029 | Serial | 5% | 118.697 | 2.62%
|
| $11.7 million | 2030 | Serial | 5% | 117.918 | 2.71%
|
| $12.4 million | 2031 | Serial | 5% | 117.316 | 2.78%
|
|
|
| $36,235,000 series 2016B non-AMT forward delivery bonds
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $11.45 million | 2022 | Serial | 5% | 114.053 | 2.15%
|
| $12.06 million | 2023 | Serial | 5% | 115.172 | 2.37%
|
| $12,725,000 | 2024 | Serial | 5% | 115.888 | 2.58%
|
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