Published on 9/11/2014 in the Prospect News Municipals Daily.
New Issue: Grand Rapids, Mich., brings to market $55.23 million sewer system bonds
By Sheri Kasprzak
New York, Sept. 11 – The City of Grand Rapids, Mich., sold $55.23 million of series 2014 sanitary sewer system revenue improvement and refunding bonds, according to a pricing sheet.
The bonds (Aa1/AA+/) were sold through senior manager Citigroup Global Markets Inc.
The bonds are due 2016 to 2035 with term bonds due in 2039 and 2044. The serial coupons range from 4% to 5% with 0.25% to 3.15% yields. The 2039 bonds have a 5% coupon priced at 113.427 to yield 3.3%, and the 2044 bonds have a 5% coupon priced at 113.002 to yield 3.35%.
Proceeds will be used to finance capital improvements to the city’s sanitary sewer system and refund existing debt.
| Issuer: | Grand Rapids, Mich.
|
| Issue: | Series 2014 sanitary sewer system revenue improvement and refunding bonds
|
| Amount: | $55.23 million
|
| Type: | Negotiated
|
| Underwriters: | Citigroup Global Markets Inc. (lead), J.J.B. Hilliard, W.L. Lyons LLC, Loop Capital Markets LLC and Siebert Brandford Shank & Co. LLC (co-managers)
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA+
|
| Pricing date: | Sept. 11
|
| Settlement date: | Oct. 8
|
|
|
| Amount | Maturity | Type | Coupon | Price | Yield
|
| $720,000 | 2016 | Serial | 4% | 104.604 | 0.25%
|
| $755,000 | 2017 | Serial | 4% | 107.73 | 0.51%
|
| $785,000 | 2018 | Serial | 4% | 110.217 | 0.79%
|
| $820,000 | 2019 | Serial | 5% | 116.211 | 1.07%
|
| $855,000 | 2020 | Serial | 5% | 118.204 | 1.38%
|
| $900,000 | 2021 | Serial | 5% | 119.493 | 1.69%
|
| $3,995,000 | 2022 | Serial | 5% | 120.323 | 1.97%
|
| $2,075,000 | 2023 | Serial | 5% | 121.222 | 2.17%
|
| $2,185,000 | 2024 | Serial | 5% | 122.429 | 2.29%
|
| $2.3 million | 2025 | Serial | 5% | 121.224 | 2.42%
|
| $2.41 million | 2026 | Serial | 5% | 120.398 | 2.51%
|
| $2.54 million | 2027 | Serial | 5% | 119.488 | 2.61%
|
| $2.66 million | 2028 | Serial | 5% | 118.228 | 2.75%
|
| $2.8 million | 2029 | Serial | 5% | 117.515 | 2.83%
|
| $2,945,000 | 2030 | Serial | 5% | 116.983 | 2.89%
|
| $3,095,000 | 2031 | Serial | 5% | 116.455 | 2.95%
|
| $3.25 million | 2032 | Serial | 5% | 115.929 | 3.01%
|
| $3,425,000 | 2033 | Serial | 5% | 115.493 | 3.06%
|
| $3,595,000 | 2034 | Serial | 5% | 115.146 | 3.10%
|
| $6,785,000 | 2035 | Serial | 5% | 114.713 | 3.15%
|
| $2.48 million | 2039 | Term | 5% | 113.427 | 3.30%
|
| $3,855,000 | 2044 | Term | 5% | 113.002 | 3.35%
|
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