Nearly $600 million of taxable Build America Bonds priced yesterday amid firmness in the market led by a large Illinois State Toll Highway Authority transaction.

A $500 million BAB deal for the tollway contains two maturities. A $100 million portion matures in 2024, yielding 5.29% priced at par, or 3.44% including the federal subsidy. The bonds were priced at 210 basis points over the comparable Treasury yield, and are callable at par in 2019. The remaining larger $400 million portion of the debt matures in 2034, yielding 6.18% priced at par, or 4.02% including the federal subsidy. The bonds were priced at 200 basis points over the comparable Treasury yield, and are not callable. They contain a make-whole call at the Treasury rate plus 30 basis points.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.