Guam – The Governor’s office has officially announced that the Series 2010 JFK Certificates of Participation (COPs) bonds were priced and sold in New York City on Tuesday, August 24th. The pricing and sale was originally scheduled to take place on either August 25th or August 26th.
According to a release from the Governor’s office, the sale took place earlier than expected to “take advantage of favorable market conditions” which showed “a very strong bond market that created a window of opportunity.”
The release states that “the $65.7 million JFK COP offering, which had a non-investment grade credit, generated much wider investor demand than originally anticipated, with several first time Guam investors participating in the JFK COP transaction.”
The release goes onto explain that:
“The marketing efforts of the JFK finance team included several extensive conversations with investors over the last few days, which assisted in generating broadened investor participation. Ultimately, approximately 50 investors participated in the offering, which was close to the number of investors secured for the Government’s investment grade Section 30 offering sold last year.”
“The JFK COPs were heavily oversubscribed in all maturities offered, with over $810 million in orders placed. In particular, the 2040 term bond was oversubscribed by as much as 14.5 times the available amount of COPs in that specific maturity. The final aggregate yield for the COPs was 6.88%, well below the maximum rate cap of 8.50%.”
“The estimated annual Base Rental Payments for the JFK offering, when combined with Additional Rental Payments, totals approximately $6.7 million, which is below the $6.9 million annual cap.“