Final closing for the purchase of the Harrisburg, Pa., incinerator by a Lancaster County public works agency is scheduled for Dec. 23, according to an agency representative.
The final price for the Lancaster County Solid Waste Management Authority's purchase is just under $130 million.
A bond sale Dec. 9 and 10 involved $105.4 million of Series A bonds; $24 million of Series B bonds that Dauphin County, which envelops Harrisburg, guaranteed; and a $500,000 deposit as part of the asset purchase agreement with the previous owner, the Harrisburg Authority.
The sale of the incinerator is one of two centerpiece bond transactions under a recovery plan designed to keep Pennsylvania capital Harrisburg, which is under state receivership, out of bankruptcy. The other is a $287 million sale by the Pennsylvania Economic Development Financing Authority to finance a 40-year lease of city parking assets.
Underwriters for the incinerator bond sale included Guggenheim Securities, Wells Fargo and Janney Montgomery Scott, with Guggenheim as primary.
According to the Lancaster authority press officer, the average interest rate on the bonds is 4.69%, including the cost of issuance. Retail investors purchased $13.8 million of Series A debt on Dec. 9. She said 21 institutional investors purchased bonds on the following day.
