The Ohio Building Authority last week completed its first competitive sale since 1992.
JPMorgan was the winning bidder. The state will see a true interest cost of 4.59% in the $40 million lease revenue bond sale, which was completed on Jan. 20, officials said.
Twelve banks bid on the OBA debt.
The authority’s assistant executive director, Kevin Fenlon, said recent market conditions — light supply coupled with the expiration of the Build America Bond program — prompted the decision to sell the debt competitively.
“We were extremely pleased with the results of the sale,” Fenlon said. “We will consider both competitive and negotiated sales on a case-by-case basis as we move forward, and our decision will hinge on the complexity of the transaction in question as well as market conditions at the time of sale.”
The bonds mature serially from 2013 through 2031.
The Ohio Department of Rehabilitation and Correction will use the proceeds for a variety of projects.
Moody’s Investors Service rates the debt Aa2. Standard & Poor’s and Fitch Ratings rate the credit an equivalent AA.
Benesch, Friedlander, Coplan & Aronoff LLP was bond counsel. Prism Municipal Advisors LLC is the authority’s financial adviser.
