By Sheri Kasprzak
New York, Oct. 5 - The City of Milwaukee priced $225 million in series 2010M8 school revenue anticipation notes on Tuesday, according to a pricing sheet and a sellsider close to the deal.
The bonds (/SP-1+/) were sold in two tranches - a $50 million piece and a $175 million piece.
Citigroup Global Markets Inc. won $20 million of the $50 million portion with Barclays Capital Inc. winning another $20 million portion and PNC Capital Markets taking the remaining $10 million. The combined true interest cost came in at about 29 basis points.
Piper Jaffray & Co. took $85 million of the $175 million portion with Citigroup Capital Markets Inc. taking $25 million and Wells Fargo Securities LLC winning the remaining $65 million. The combined true interest cost for the $175 million portion came out to 36 bps, according to the sellsider.
The notes are due Dec. 29, 2010 and June 27, 2011. The Dec. 29, 2010 notes have 1.25%, 1.5% and 2% coupons. Only the 2% notes were reoffered at 100.294. The June 27, 2011 notes have 1.5% and 2% coupons. The 2% notes were reoffered at 101.087.
Proceeds will be used to finance the school's general operating needs ahead of the receipt of school state aid payments.
| Issuer: | City of Milwaukee
|
| Issue: | Series 2010M8 school revenue anticipation notes
|
| Amount: | $225 million
|
| Type: | Competitive
|
| Underwriters: | Citigroup Global Markets Inc. (for $20 million of $50 million tranche); Barclays Capital Inc. (for $20 million of $50 million tranche); PNC Capital Markets (for $10 million of $50 million tranche); Piper Jaffray (for $85 million of $175 million tranche); Citigroup Global Markets Inc. (for 25 million of $175 million tranche); Wells Fargo Securities LLC (for $65 million of $175 million tranche)
|
| True interest cost: | Combined 29 bps for $50 million portion/combined 36 bps for $175 million portion
|
| Rating: | Standard & Poor's: SP-1+
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 27
|
|
|
| Maturity | Type | Coupon | Price
|
| Dec. 29, 2010 | Term | 2% | 100.294
|
| Dec. 29, 2010 | Term | 1.25% | NRO
|
| Dec. 29, 2010 | Term | 1.5% | NRO
|
| June 27, 2011 | Term | 1.5% | NRO
|
| June 27, 2011 | Term | 2% | 101.087
|
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