New Issue: Detroit school district prices $210.54 million G.O. bonds

By Sheri Kasprzak

New York, Oct. 6 - The School District of the City of Detroit priced $210.54 million in series 2010 school building and site unlimited tax general obligation bonds on Wednesday, according to a term sheet.

The sale included $160.91 million in series 2010A taxable direct-payment qualified school construction bonds and $49.63 million in series 2010B direct-payment Build America Bonds.

The bonds (Aa2/AA-/) were sold through senior managers Siebert Brandford Shank & Co. LLC and J.P. Morgan Securities LLC with Loop Capital Markets LLC, Citigroup Global Markets Inc. and Edward D. Jones & Co. LP as the co-managers.

The 2010A bonds are due May 1, 2029 with a 6.645% coupon priced at par, and the 2010B bonds are due May 1, 2040 with a 6.845% coupon, also priced at par.

Proceeds will be used to acquire land, construct new schools, remodel and expand existing schools, purchase and upgrade technology, develop outdoor athletic facilities and upgrade security measures.

Issuer:	School District of the City of Detroit
Issue:	Series 2010 school building and site unlimited tax general obligation bonds
Amount:	$210.54 million
Type:	Negotiated
Underwriters:	Siebert Brandford Shank & Co. LLC and J.P. Morgan Securities LLC (lead), Loop Capital Markets LLC, Citigroup Global Markets Inc. and Edward D. Jones & Co. LP (co-managers)
Ratings:	Moody's: Aa2
	Standard & Poor's: AA-
Pricing date:	Oct. 6
Settlement date:	Oct. 28
$160.91 million series 2010A
Maturity	Type	Coupon	Price
May 1, 2029	Term	6.645%	100
$49.63 million series 2010B
Maturity	Type	Coupon	Price
May 1, 2040	Term	6.845%	100

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