Impact of Bond Pricing Advocacy
Texas Children's Hospital
Aa2/AA/AA
$200 million of fixed rate bonds
Pricing Date: 6/2/09
Underwriting Team: J.P. Morgan, RBC Capital Markets, Merrill Lynch + EdwardJones in
selling group
Financial Advisor: Ponder & Co.
| Maturity |
Coupon |
Yield |
Spread to MMD |
Takedown |
| 2024 |
5.00% |
5.07% |
136 |
$10.00 |
| 2029 |
5.25% |
5.35% |
112 |
$7.50 |
| 2034 |
5.375% |
5.45%
5 Year Call |
88 |
$15.00 |
| 2039 |
5.50% |
5.58% |
93 |
$7.50 |
- Retail specific term bond in 2034
- Sold $83 million to retail investors in a state with low taxes
- Yield curve and spread savings
- Approximately $350,000 PV savings for 2034 retail term bonds vs. 2039 term bond
(after costs)
Children's Medical Center of Dallas
Aa3/NR/AA
$200 million of fixed rate bonds
Pricing date: 6/18/09
Underwriting Team: Goldman Sachs, J.P. Morgan, Estrada Hinojosa & Company, Inc., Siebert Branford Shank & Co.
Financial Advisor: Kaufman Hall
| Maturity |
Coupon |
Yield |
Spread to MMD |
Takedown |
| 2024 |
5.00% |
5.25% |
138 |
$9.47 |
| 2029 |
5.50% |
5.65% |
134 |
$9.47 |
| 2034 |
- |
- |
- |
- |
| 2039 |
5.75% |
6.00% |
132 |
$9.47 |
- Was the spread at an appropriate level?
- $80 million of the deal passed through EdwardJones
- Note: takedown by maturity not known; average takedown provided instead
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