Published on 2/26/2016 in the Prospect News Municipals Daily.
New Issue: Lower Alabama Gas District sells $599.35 million gas project bonds
By Sheri Kasprzak
New York, Feb. 26 – The Lower Alabama Gas District priced $599.35 million of series 2016A gas project revenue bonds, according to a pricing sheet.
The bonds (A3//A-) were sold through senior manager Goldman, Sachs & Co.
The bonds are due 2027 to 2029 with term bonds due in 2031, 2034 and 2046. The serial bonds have 5% coupons with 2.97% to 3.25% yields. The 2031 bonds have a 5% coupon to yield 3.55%, the 2034 bonds have a 5% coupon to yield 3.75% and the 2046 bonds have a 5% coupon to yield 4.14%.
Proceeds will be used to prepay a 30-year gas acquisition contract.
| Issuer: | Lower Alabama Gas District
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| Issue: | Series 2016A gas project revenue bonds
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| Amount: | $599.35 million
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| Type: | Negotiated
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| Underwriters: | Goldman, Sachs & Co. (lead), RBC Capital Markets LLC and Stifel, Nicolaus & Co. Inc. (co-managers)
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| Ratings: | Moody’s: A3
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| Fitch: A-
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| Pricing date: | Feb. 23
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| Settlement date: | March 1
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| Amount | Maturity | Type | Coupon | Yield
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| $18,665,000 | 2027 | Serial | 5% | 2.97%
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| $19.75 million | 2028 | Serial | 5% | 3.10%
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| $18 million | 2029 | Serial | 5% | 3.25%
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| $47,005,000 | 2031 | Term | 5% | 3.55%
|
| $65 million | 2034 | Term | 5% | 3.75%
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| $430.93 million 2046 | Term | 5% | 4.14%
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