HomeMy WebLinkAbout1987
Bid Submitted for
Texas Municipal
` pcmMt Ag cy
Refunding revenue Bonds,
5e`~e1~87~,
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Texas Municipal Power Agency
RefundhV Revenue Bonds, Series 1987
i
F*bm" So 1987
E:
F
s' , c Salomon $roftrs Im
Cmdnwn, SscM 8 Co.
MarI11 Lynch Caplbil. ANatk6b ?
J &nkh may, HWwl pham Co. ?I** WebW
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$4300650,000
TEXAS MUNICIPAL POWER AGENCY
Refunding Revenue Bonds, Series 1987
i Trots OF CON ET NTS ~
To .
1 TERMS OF THE BID
Terms of the Bid
Reoffering Terms
Annual Debt Service Comparison
Ii TEXAS MUNICIPAL POWER AGENCY
Comparison of Maximum Yields, Interest
Coats and Selected indices
Comparison of Underwriting Spreads
COMPARATIVE ANALYSIS oF_RECENTLY NEGOTIATED
III ELECTRIC REVENUE BONDS
IV COMPARISON OF TRADINJ LEVELS FOR:
The bond Buyer Revenue Bond Index
Salomon Brothers` 'A' Tax-Bxef+pt
Electric Revenue index 30 33 Yeats
The Agency's True interest Coat Levels
for Issues of 1985 and 1986
NEWS ARTICLESt
V •Deal of the Week", The Bond Wax
Monday, February 2# 1987
•The Municipal Market", The Bond eu_m
Tuesday, February 3, 1987
' anon MrA1LT J1 00M and MHK'pT8 ON CREE?il'
Vi for week ending January 30, 1987
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$430,650,000
TEXAS MUNICIPAL POWER AGENCY
Refunding Revenue Bonds, Series 1987
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Terms of the Bid
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Underwriting ry: _ o tars Percent
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Gross Production $410,160,610,60 95.2422%
Underwriters' Discount 4,414,162 50 1.0250
Bid S405 J4`448 ~1I1 94.21721
Discount 9roakdorn
Takedown- $3,221,262.00 .7480%
Nanappeot fee 64S,975.00 .1500
Expenses 374465.50 ,0870
Net to Underwriters 172.260.00
UndeNI ter's Discount 54.414.162.50 1,025
Not InteresE Cost: 6,8757%
rtue'Interest Cast: 7.1993%
True Interest Cost U11owa61e): 7.1462%
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$430,650,000
TEXAS MUNICIPAL POWER AGENCY
Refunding Revenue Bonds, Series 1987
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r Repffir-W Terms
Due Interest
September 1 AmanL Rate oL{SB yjsjQ
f
r, 1991 $2,875,000 5.200% 100.000 5.200%
1992 3,025,000 5.500 100.000 5.500
1993 3,195,000 5.750 100.000 5.750
1994 3,380,000 6.OnD 100.000 61000
X1905 6,370,000 6.200 100.000 6.200
1996 9,3700000 6.400 100.000 6.400:
1 1997 909706000 6.560 100.000 6.500
1998 10,000,000" 6.400 100.000 6.400
j,. 1999 10,000,000" 6.500 100.000 6.500
2000 17,420,000 x.000 100.000 7.000
7001 18,635,000" 6.750 100.000 6.750
2006 126,000,000 7.250 99.250 7.323
2007 25,000,000t 6.875 98.649 7.000
2010 100000000004 6.250 91.000 7.039
2011 36,155,000 7.250 99.000 7.338
J 2013 49,255,000 5.500 80.012 7.200
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' AVERAGE LIFE
r MAL BOND ISSUE 18 YRS 11 1& 21 DYS
Wt. temi Bond 17 YRS 2 MDS 12 DYS
2
00 aerm Bond 20 YRS 6 NOS 22 DYS
2010 tern Bond 22 YRS 6 MOS 17 DYS
2011:lerm bond 24 YRS 7 NOS 0 OYS
2013 10aa Bond 25 YRS 9 Mm 17 OYS
t AMBAC insured
4 old Insured
" 7G1C insurord
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M OS "ICIPAL PCKO M'ALY
RERMM Rfl'rNA KKS, SERIES 1987
*#4AL OW SUNICE MPMISM 9QEA,lE
FiEFLICK BXS(t)
MDO OCIA71 PRINCIPAL IN17NE57 0011 SERVICE OW 5E CE Olt? t7CE
1 T -19V 18.052./27.22 14,114,573.51 tE,0 4105.O 2.616.421,0
1 1 1919 78,50.332.58 28,540.332.50 33.09,119.99 511611677.58
9 11991 781516.332.38 28,518,352.59 33.110.619.0 5.01,617.0
9 1 !fl" 2.54.332.59 7815431332.56 35,10,/40." 5^119".59
9 1 1901 2.973.619 78.540.332.56 31.421,332.56 33.0.66." 241861677.56
9 1 1902 3A5.0111 261311GAV 50 31.421,87!.0 33.0,618.0 2,196.177.56
9 1 1003 3,195.00 78.230.457.51 31,425.131,50 33.819,60.0 21112,582.50
1 11904 3,311.110 7/./40,745.0 31.420.74.0 33.0j.00.OC 2,191.218."
0 111" 6,379.00 27.663.114.0 31.211.918.0 36,3111AN1.M 200416X6.0
9 111" 0,370,10 27.440.10.0 31,11!.10.0 30.116,397.910 2,166,312.31
n 9 11"7 9,11M.110 26,80.375.19 31,019.325,0 31104.43.78 2.115.670.75
9 11940 15.2".M► 26.2M.275.0 41104M5.0 43.60.011.0 2.19/.7".0
9 1 IM 16.310.90 26,1797.476.M 41,#A.476,0 43,170,14'..`! 2,10,977.0
9 1 210 17,420,10 241971.100 M 4M./MM 0.01,110676 2,10,119.75
r'S 9 1 200 161175,10 72.01.00.19 41.4t11.M.M 41.672."1.01 2110.07.50
! ! 120" 10.0",/0 21.5/3,737.30 41,40,17.0 41.671.470.0 2110111112.0
9 12M 21,376.110 21.151.712.19 41,486,712.0 43.M.40." 200.902.19
9 1286 22.06.00 40.O6.119.M 41.40,9A0 41.41MAMM 2.119.119.0
9 1219 24.54.00 10.016.70.0 41.10.X1!1.0 411111,710.16 2,10.401.19
1 0 121116 26,371,00 15.10.20.0 41.*vw.219.M 41.174.230.0 2,IN M.0
9 1 900 19.776.00 13.2O.10 M 0.494 U&N, 0,071,711.0 21196.10.0
t 9 1210 31,14 00 11.343.4"M 41.40:M.M 43.071,111.0 2.1!17.02,0
0 12W 32,019.00 0.40,6MM 41.4+76,042.0 43 wo.519.M 2.16F.!0.0
9 12M0 34,9X,10 7,407.4/0.0 41.402.40.0 43,072,437.0 2.170107.19
0 1 201 31,10.89 3,330,2@.57 4%,419.20 S0 43.01,715.0 2110,977.0
0 1902 31/709/10 211M.41,40.173.0 43.05.075.8 2110,919.0
1203 10.473,00 570,125.11 11,i►1.125.8 13.233.075.8 2,10,190."
7C4'ALS 4,6,00,00 5X.563.179.79 919.119.7211,0 1.104,70,342.0 0.111.64.0
P11110Q was At 7.134 Am 40,913,434.0 442,M.M.44 0,311,63.46
LM w Am LM 740 M IfC110► NO 5,20,111.0
N71AL! 30.048.63/.50
'j (1) CM 50111CE M M IJ"o Snob 19 NE7 OF AWUD DA MI W 12,SA1461.70
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$430,650,000
TUAS MRfICIPAL POWER A6BHCY
Refunding Revenue Bonda, Series 1987
figmsrison of Marto un Yields. Interest Costs and Selected Indicns
t
` Revenue
t Principal Ka was Yield Bond TIC Bond
Sale nits Amount Ya~t 1411 kd" Yield fA1C~ _1nd4y_
a ;,''8triir:1937 2-05-86 1430,650,000 2011 7.25071 99.00 7.338% 7.149% 6.98%
,9 tie~'1986 8-14-86 92,470,000 2012 6.000 98.00 8.187 8.157 "7;91
of i i 8apies`1485,'' 5-16-85 206,0000000 2013 9.500 99.50 91549 9.480
# ~''.8iri~i 1983 3-04-63 379,9600000 2012 9.500 99.50 9.5SO 9.612 9.62 "
}
O#Mi`1911A !3:42 76,300,000 2012 10.750 100.00 10.750 10.810 1049
tilie`1912' 1-14-82 3000000,000 2013 14.625 100.00 3.4.623 14.540 14.32
t1. 1480,, 7-31-80 250,000,000 2012 9.250 100.00 91230 (9.126) 9.31
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Wise 1979 3-1579 3000000,000 2012 7.000 100.00 71000 (6.896) MA
Wits 1978 -8-03-78 2$0,000,000 2011 7.000 100.00 7.000 (6.925) MA
ti Oriir !976 4-29-76 $000000000 2011 6,375 94.25 6.426 tR.363~ !fA
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' 1 7-1 pun I i I . rte.... _ .-..r ✓w~ ~-^'1 Y~/1 ry ry5
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1430,650,000
TRUS MMICIoAL POWXR AQKY
Rtfunditg Aevenne bonds, Series 1967
'c Onowarlsor E Ondarvritlna &gLt"A
.
( F per ft0000
sale Principal Maaaleomt Not to Avorai9 Total
Dula Amount _ Yea utw ulwbiA Il1SMM
' s`tlaa,1987 2-05-17 < ! 430,650,000 ! 1050 ! .40 ! .07 ! 7.46 WAS
lrelsa 1946 1-14-16 92,470,000 2.00 M 2609 6116 12.90
y
$ rt" 1915 5-16-15 2060000,000 3.00 1.00 1038 12.47 17015,
Soria s,1983' 3-61-83 379,960,000 3.00 1.00 1000 13.00 18.60
6tiia,19SiA '11-23-82 161300,000 3400 1.39 2.15 1S.66 22,50
;iriii 1912 1-14-82 30010000000 3.00 1.75 1050 17427 23052
y s
S~tifi,,1910 1-3160 25000000000 3.00 1.75 1.74 11.23 11071
86040 1979 3-15-79 30060000000 3.00 1.75 1.80 10.00 i6.s5
Iprili 1976 8-M-78 2509000,000 • 3.50 1.75 2,07 11.36 18070
21.12.
$erids 1916 9-29-76 $000002000
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EXPLANATION Or GROSS SPREAD COMPONENTS
TH following is a brief explanation of the components of gross
spread:
~ Gross Spread
1t
The underwriters are compensated by the difference or "spread"
r between the price at which the underwriters buy the bonds from the
issuer and the price at which they resell the bonds to investors.
The underwriters' spread varies depending on the size of the issue,
p! the nature of the credit behind the bonds and the risk factors in the
market place at the time of the bond issue. There are four basic
elemcr„s comprising the underwriters' spread. They are salesmen
compensation, underwriters' compensation, management compensation and
4+ expenses.
1. The salesmen's compensation is that portion of the spread paid
to salesmen for their efforts in selling the bonds and usually
accounts for the greatest percentage of the spread. The sales-
men compensation varies depending on the prevailing market
conditions and the credit rating of the bonds. The more diffi-
cult it Is to sell the bonds the higher the salesmen's compen-
sation will be.
2. The underwriters' compensation, sometimes referred to as "net to
underwriters", is that portion of the spread paid to the members
of the underwriting syndicate for their commitment of capital
and resources to the underwriting. In other words, the amount
of capital a syndicate member commits to the issue determines
the percentage of the underwriters' compensation received,
3. The management compensation is that portion of the spread paid
to the managers for their efforts in structuring the financing.
The manspers working in conjunction with the Agency's staff,
financial advisor, bond counsel and g9eneral counsel develop the
J financial documents, such as the Official Statement. The mana-
gers develop a market fur the bonds which includes the formation
of a nation-wide syndicate and arranging for information meetings
in vartous money market centers. The overall responsibility of
the managers is to successfully place the Agency's bonds at
the lowest interest cost acceptable to both the purchasers and
the Agency. The management fee is usually split evenly among
the managers of a particular Issue except that the Senior Manager
receives more for doing the greater share of the work.
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's 4. Out-of-pocket expenses are that portion of the spread paid to
the managers to reimburse them for expenses incurred. These
expenses include legal fees, advertising, printing, travel and
other expenses incurred prior to and during marketing of the
bonds.
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JIC (True Interest Costl
The True Interest Cost ii a method of computing an issuer's cost of
borrowing that takes into consideration the time value of money.
' The TIC is that rate which would discount the principal and interest
payments of a bond issue to the purchase pric4 received for the
bonds. By analogy one could say that the TIC i the yearly lrteresc
I rate an issuer would be paying if it were a bank whose savers
deposited the bond proceeds and withdrew the interest and principal
according to the maturity schedule.
Bond Buyer RAVenue ,And In Ix
This 1s in index composed of 25 revenue bon,.* including those for
public power, housing, transportatloa;, hospitals and pollution con-
trol suturing over 3 years. It is compiled weekly by The d uler
and lAcludes Issuers with ratings from Aaa" to Bail" by Moody's
Investors Service and "AAA" to "A" by Standard and Poor's Corporation.
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COMPARATIVE ANALYSIS Or RECENTLY NEGOTIATED ELECTRIC REVENUE BONUS
Sale size Ratinam Cross mai.sms Yield Bond Revenue
Z4i4 19DIl1 K/S&P Soeesd*.._ I~t Yit10 IICs Bond Indez+~
1,01IDA`MONICiPAL POWER 1/23/87 $593190 Asa AAA Mgt. 11.00 2014 6.769% 6.696% 6.92%
C6M:Y, povii Supply (rCIC) Exp. 1.60
Pco~set Re Nading Revenue U/R. -
not►ds Tkd. 5.91
C.S. 15.51
s.
4 'City Or, six AI'O11I0,' Tun 1/23/87 3910780 As AA Mgt. 12.50 2012 7.042 6.960 -,6.92
It d`etriC and 'ass 9yit"s - MT. 1.13
I,
tsweaue fRAfMdine Bond,, Me .50
~ii► Sst16s 19,7 Ad. 7.46
C.S. 111,59
IIQEWIOMAIN POWER,ACENCY, 1/22/67 192,270 Al A+ Mgt. 1 2.00 2006 7.071 6,969 6,92
tlTAA' PoMat 9upp1Y RaVdiue Exp. .62
loads, 1967 9sieies A
Tkd. 7.38
G.S. 110.00
P`
tix'Ag A*lC1PAL POV19 AGIMCY 1/16/87 460240 Asti AAA Mgt. $ 2.50 2017 6.994 1,258 7.04
~3icttis.Syst«i nslundii (Big) Rip.' 1.25
' #tafliidlti8 Sotids U/R, .73
Tkd.. 7.83
A.S. 113.32 R
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y,sSe6 Preceding Notes
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COM UTIVB ANALYSIS OP U-rjU LY NEGOTIATED ELECTRIC UY M BONDS
z Sale Site IAUM gross Maximum Yield Bond * etndez
t
Date (000) _WSFAP_ Soreada XIM Bond Ind
30U mii CALIPORNIA 1/16/87 $3520645 Al A4 Hat. $2.SO 2015 7.000 6.926% 7.04%
l~ISi.YC ?OMER At1Te0RiTY Esp. .92
Povor Projset tegeaue'Bonds 0/R. .65
1W , kefunding Series A ?kd. 7.43
tl~tlgll! Maio POYER 1/08/87 360850 HR AAA Hat. $3.00 2006 7.000 6.950 7.01
,F EU!~YIJ! ~UTHOR1tY (ANZAC) Esp. 3.74 (NIC)
ma ttiintir ahand ina U/R. .50
Stt1e0' D Tkd. 10.76
ag „ c.s. $lc.oo
JACkSOMIi U ELECTRIC AUTBORITY 12/!6186 2100969 Al AA Het. $1.00 2012 7,314 7.039 7.34
+L Jackaonvil3e~ Plorlda` Ysp. 1.64
tt. Sobm's hiVSr ?over Pack System Wit. .75
16 as ~tvrtwe Bonds Tkd. 8.3s
4.6. $11.74
Lade l1r8j' dlries Your
V"
r',• '`F1E Ig1~I "WicIPAL POWER AgENCYt 12/01/86 3630700 A A- Mat. $2.54 2022 7.309 7.$69 7.16 {
:1t14ckti$ Rerysnue ietundina Bonds PIP, .75
4', , 416 Series U/R. 1A.15
W.
9 G.S. $11.90
a YY
k~~~? ,MSS! preCedift hotis y
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COMPAR4T11EASA~YSIS OF SSC$MTLY IfBCOTIATSD ELBCTAIC QSYEN06 w=_
Sale size gatinas Grose maximum Yield Bond Revenue
TIS.'~ Bond Index!
48SS 14441 ~lLS4cY&7 Soreada Im Ulu
INO08PORALBO COUNTY OF 11/26/86 1110x000 Baal BBB+ Mat. 13.00 2015 76750% 7.672% 7.1670
JA ALAMOSS NEW NEXICOM: Esp. 2.62
Utility; 3yatem U/R. -
RaftmAinS Iftenue'Bonds Tkd. 9.88
erisa f9e6 A, G.S. $15.70
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lAXV.PMk ACRNCY 11/26/86 492 195 Al A+ Mat. $2.00 2008 76342 .134 7416
haply tsrenus Enp• 051
U/8. 1.25
` ~4Ui,Bonds
sties F Thd. 6.27
t
:.0.8, 110.02
;
~ a,'IYR CI'f1f Ot Gt11710 HAY1311o . 11/26/86 96,160 A A- !!at. 1 1.75 2016 7.202 7.131
'+2;1 IGAtI# oit rh System "P. 2.00
'Re ariyi =eEtindiha Ronde Uikd. 7.94
1486~1aries. G.S. 112.90
;t dhlf 61' LINCOLN; NSuopjyA 11/24/86 93,127 Al AA l18t. 13.00 1002 7.250 7.251 7.18 n
*14ett`i0 Systp P¢var Supply 2.84
rya 'l 1S 1SEi ~..RelvndiAg kevehue bonds U/R. .75
Tkd. 8.02
~1~16'aiea A G,S. 114.61
prtl dl4 Notes
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~ (ice r~.~1 ~.A ~ ~ I , • . COMPARATIVE AMat.HIS
V, Of RSGBIf1'L•Y 11660SIATSD SjACT$IC RBVESUB BONDS
x f"
. Sale Size JAjJ 9a Croea Maziiia Yield Boad Revenue
VAU (000) MIS&P Spread* xm lip" TI~a bond Indez*
"INDIANA MU~IICIFAL ?MR 11/21/86 $162,350 A A- Mat. ~ 2.50 2015 7.355% 7.338% 7.16%
/ ;Dover 8upplr'dyEea Up. 3.00
U/R. .90
l~tmdiai' ltevenne Bonds'
1986 'S'S"As, ,A TIA. 7.96
C.S. $14.26
y, dOflT1 l11 MfliMS&A.mIAI 6hl, Mgt. 12,25
f * F01 AUTli,OlIi'y Po Vat Supply to. 1.21
kk tystsit lrranue aefwidin8 Tsoade U/R. .75
11/21/96 1999135 A A Thd. 7.47 2015 7.247 76150 7.18
r,`+►islrifi`0 11/41/86 70725 A A 0.3. $11.69 2003 7.00
$Ot#!1{Litll CAy.XFOMA Il/20/86 3S4,630 Al A+ Mgt. 12.25 2015 7.166 74182 7.29
t rp, .IE Ik! AUTlO~IlY up. 0.46
r` 1'aMN1 Frojlel li*anue Bonds U/t. 0.65
°1916 kafund![vj 9etles S Tkd. 7
0.8. 111.50
rr` I
NBLrP p011!! ACEIICY 11/14/96 41415 Al A+ Mgt. $3.00 2019 7,272 7.404 7 129
e liver Pioject Rsfundioj up. 3.75
4ci fine Vii, V/!. .65
{f' , 19 '6 9eKai B Tkd. 7.50
,1 a , ' C.S. $14.90
004 prieediae Notes '
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COMPARATIVE A_MYS1S OF LCRKTLY MRGOTIATRD BLCTRIC UMM BONDS
r
Sale Size gig Gross Ma:iona Yield Bond ReVenae
i, Q1bG (0001 M/S&P Spread* _ yy y2e1d M* Bond Indeze
S.
f' GX4 LOMA MUKICIPAL PMR.y 11/07/86 $W! 475 A A- Mgt, $2.50 2020 7.476% 7.42% 7.30%
AUTMOIm"Pever wp y 8yet" mcp. 1. 1
t1h Relmditli boad, V/R. .50
6e#Ia 1966, C TkdA_
C.S. X11.64
3`i~ ,1 VILLb R1. 6`l11C 11107/66 205,760 Al AA ASt.
RV. 1.42
A!lI~D ~T ,Re~ieiwe Refund ag
sod+~" 7esaA IY:9erltr IiI $1,00 2013 7.417 7.66 7.30
u/R. 1.00
XTM Tkd. 7.S7
C.S $10.99
;rte CT1Wt1 MINICIPAL 10/31/06 31j21S Asa AAA Mgt. +2.50 2008 7.011 7.136 7.30,
' . MtIC COOP=RAlI1►Y (MBIA) up. 1.71
+4t r Mw:r'p air'~►aar . u/tt. .50
' , lrrenar befmding Son do Tkd. 7.99
s ;t C.B. $12.60
MtB1ICIPAL. 10/31/86 460125 RR AAA Mgt. 12.50 2016 7.122 138 7.30
+ 0 ONO* 000Pt"TIVR AMC) (Rap.` 1.71
" , '.~oWr"4~a p1y System WE .50
w Rt lriMdr Retasdid{ Boas
~ ;~*Se Pridedin& Notes
COMPb TIVB ANALYSIS OF UC6NTL•Y NEGOTIATED ELECTRIC &a= Bons
` Sale Size Retinas Cross K"Imm Yield Bond ReYenue
' i Dug [000) WS&P_ Spread* 1"L Xi,i14 21C* Bond Inder*
R
r 10Vta.CIJtOLIMA PUBLIC 16/31/96 $3350630 Al A+ Met. $ 2.25 2001 ' 7.359% 7.39% 7430%
#1RNY{~tt80ltIEzp. 1.75
Ti
' , gioati fie. paten "upwilon .89
„ :1W'e~fiN bgdd Tkd. 7.61
`1 leriu C iad n - C.S. 112.50 r
7 30
~ ' 0l ARIII>tili,L C►L O61NIA 10/31/86 77,760 As A+ Xgt. 1 1.50 2007 6.99 6M
~ecotriiesye of 1Boads Exp. 1.93
gab U/R.
0.00
* i Tkd_ a.32
C.S. $11.75
w,`s 1111U!20N D1ST21CTj 10%21/46 161,500 A A+ Mgt. rj 2.00 2015 1625. 7.24 7.50
I1;, Lw. 2.00
` din$ Cfrtiticetii of U/Y. 1.00
ieiptia► Tld,~. 7.73
. 9 ~~d#11u1"~ C.S. $12.73
bA11 l8 C%IP3'BA[. 10/16/46 92,490 A AAA; Kati 2006 7.25 1.46 70SO
AN►G)
Syst venue S tl/a.ro.h; s f,
l tltr~iid IQod6~' 1986 Ser ss Tkd,_Z jS.4,.gd9.~d a
,aSr~ Preceding Notts
~r1 f
?1:154 .1 a -I Yt )~a~
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C019ARATIVE ANALYSIS OF RECENTLY NEGOTIATED ELECTRIC REVENUE BONDS
Sale Size Rltim Gross Maximum Yield 7jQSd Revenue,
J. yjjp 10001 AIM Spread* y"Y =A Bond Tndexa
'01TY OI', juTTU wASNIN6TON 10/09/86 $249g685 Aa AA M`t 1 2.00 2007 7.:40% 7.129% 7.47%
>IlnaielPait Limit 'and Poxes Up. 2.00
4iVasio 24(uudias Boma 1986 V/R. 0.00
2kd. 7.40
M. $11.40
Cft~ 0~'s l lwC03s',TMU 10/62/86 16,359 Aaa AAA MSt. 1 4.00 2016 7.46 7.493 1657
its itSjitsm, (NlBIA) Up. 3.00 Y f
'X
4, E>eWc eeBdnde ► s a6a 1486 U/R. 1.00 J'
~ gTl~l... 7.R5 WAS
a
~p
SN, 'PMLIC' 9/26/86. 306,130 Baal BBB4 Mgt. 1 2.00 2015 66066 71954 735
btB I1 Up. 2.27
75
tia!>~6a Systui' tareau8 U1R. .
` ttridila~' Bet►da 84"Ada 1986 A 9.49
114.45
P'
POkS ~x" ItPi`Y OF, TNE'STITt 8/26/86 4130780 As AA- flat. 1 2.50 2016 7.20 7.199 7.157
try.
-or tigw~~ die►ir►1 Purpoail 1.25
;
boada, Set~ef U U/1Z. .25
Tkd. 8.00
0.8 112.00
a:
>iSaA precidln8 Notes
y
COMARATIY6 AMALYSIS OF UCAM NEGOTIATED SLSCTFIC REUXilUB 99104
Sale Size RatinsR Grose M"Isum yield Bond tereaue
Diu !0001 M/S&P Spread* xm livid MA k4IId_.Sndw
;~fACK10111~Iia.% tLS1T110'AUi'BORITY 8/25/86373,310 Al AA Mat. 1.00 2019 7.47% 7.549% 7157a
~Lr ~ohoay kirir rover Park Xzp. 1.58 ;
1.00
p~'te~ .iim4di~a84'~ienva fonds U/R.
ti~lgaVo~ 3~tiia '1Vo Tkd. 7.57
G.S.111.15
a
F l1IM PONYR ACtRCY 8/22/86 5249410 Al A+ Hit. 1 2.00 2616 1.61 7.654 1.51 f p'
~ abri~ciaal G611R6EIoti Doads~ Up. .50
'6rier U/R. 1.50 a'
Tkd, 10.38
v G.S. -114.38
LLL L
LV `
uOMIiBt(ILLtj TtX►S ~4rfii1464 A 8;22/86 141600 Mal A- Mat. 1 8.50 2018 8.09 8.345 , 7.77 ~
Rzp. 3.91
U/R. .75 ;
Tkd. 12,23
d.9. 121.41 1
4_,,, ,4 9~ri+~ 1486 b. 8/22/86 20300 Aaa AAA. NO, 13.50 2007. 7.51 7.344 7.57
Exp. 3.00
at U/R. .75
TM, 11.50
~FV arAL r.M~a
r~~aSa~pretediria 1lotra
` COMPARATIVE ANALYSIS OF RECKN I nGOTIATED ELECTRIC REYEBUB BONDS
Bale Size Retinas Grose Max UK Yield Bond Revenue
E" Oat& (UOU) _ ,4oread~ xw lip" TISiR, Bond Indez+~ "
VMt ",.1OLDIA *INICIPAL POWR ' 8/20/86 4262j960 A A Mgt. 1 2.50 2018 7.54% 7.496% 1.37%
AR pCY Rd.'1 Catiiba $lectric up. 1.75 ,i
r~ tNiidf;londs~ 86ries 1986 U/R. .75
ti 7.86
Its, '
t G.S. 112.66
k IiICIlIyl. EIiCSRIO AUYNORITV 8/20/86 416$265 A AA- Mgt. 1 .500 2018 7.90 7.57
£ lpi'. A ~f Revenue UP, .00
E His L
i+ `0 Tkd. 7.10
C.B. 18.30
8.157 7.63 "
l8711tC~Pj►L 70MER AOMY -8/14/86 92,470 A A4 Mgt. 1 2.00 2012 6.187
~''lfe~i ibeeda Bertaa 1986 up, 2.09
U/R. .65
112,90
CAt.YlOfWtA f0alk
aeCetd Project"*wber
Otla Relada"a` teach
ldris! B ' 8/13/86 349,820 NR A- Mtt. 1 2.00 2024 800 7.470 7663
i;"leris 0 8/13/86 60910 NR A- Exp. 1100 2024 8,25
a.. U/16 075
' 6.25
8~8. 110000 .
f{F
t
'i8e reeodt"' Notes-
F'
441 Vti . Y%~!
t
MWARATIVE ANALYSIS OF RECENTLY NEGOTIATED ELECTRIC REVENUE BONDS
sale Site Rat1pgQ Gross Maximum Yield Bend Revenue
E Alts L= WS&P Soread* xw XLW TIS* ~14.1u4er"
CITY 0I' 1. 'PLAIID, MAX 8/04/86 $1600915 Al AA- Kgt. = 2.50 2009 7,95% 7.973% 7.46%
glaetrin mA Otter Revenue in. 1.50
a^ioi~det RehridinA'Series 1986 U/R. .50 ;
Tkd. 8.43
,c G.S. 112.93
rR1eCt~rie And water kevenue 8/04/86 91,725 Ass. AAA 2006 7,823 7,760 7.96
(Ii d i~A a Giro),,Refuudia& (AMBAC)
,-`.;~brf ' 1986' .
L:
100, A PM, I'C - 7/30/16 340435 Al A+ MSt, ~ 2.50 2017 8.168 8.308 8.08
rM . t Ru de Boras ie 0 R. 4.00 .r
1NAertu" A . ; ' IIs~._ lip 11
t7.S. 121.54
* ' lid POY i Aacky 7/21/86 408,285 Al A+ Hit. 2,00 2014 8,09 8.089 7.91
2aeial"0blijAtion 866dsNsp. .50
tietf CroBoiir Seetes U/2. 1.50
7.67
Tkd.
` 0.3, 111.67
"ILI
' e*See Preceding Motes
{
n Ja~~ r
a
CMARATIYR ANALYSIS OF REMMY NEGOTIATED RLRCTRIC RSY M AMS
Sale Size Pang`/ Grose !Maxima Yield Bond Reve4ue
AUA Lm M/36P_ Spread* XAU Yield IN* Bond Indeza
PIEOl XT;NXICIPAL POWER 7/15/86 83450015 A A- Mgt. 2.50 2023 8.04% 952% 7.91%
4b'WY Electric"Revenue Bonds, RIP. .88
1lis6 Rih"Iua Series U/R. 1.50
Tkd. 8.24
G.S. 813.12
r.
,6LAWiA iMT1iICIPAL R1.RCiRIC 7/10/86 140,000 A A- Xgt. $ 4.50 2001 7.99 8.045 .7.91
AOl510RIty'll or Sdopw'systes Rip. 3.49
U1X 0, Bong,' 1966 Series A Wit. 1.00
11.23
y ~
S. $20.22
GAL1POl1f1A POViR V03/86 265,090 Us BBd+ MBt. 8 2.00 2013 8.000 7.769 7.90
4
~,igdroelecteid R=p. 1.50
l 3sct llo, l Reams Aortdr, b/R. 1.00
-,M4 WfVi1A ariee A Tkd. 7.71
Y F G.S. 812.21
COi.OW6 RYVIR S/29/86 200,000 A A Dljt. 8 LSO 2015 5.444 8.4219 8.07
AYl1DR2lEi'igrip~ity RIP. 1.09
R1n11~61i bonds U/96 . 54
tiii ,19 6 , Ud. 8166
s CIS. $11.79
e8ee Pceced'!iu'ifotls
COMPARATIVE AXALYSIS OP RECR,$lj&?AWTIATED ELECTRIC REY M BORDS
` Sale Size Ratings Grose MaximmtYield Btpd Revenue
DAIS t0o0) M/S6p Spreada_ hu III" TISeA Bond Indexa
r
TUQL d JRYICATION DISTRICT, 5/20/86 = 550000 A A Mgt. 1 4.12 2028 71878% 7.80% 7.91%
" . QAL~lOR11LS Reveaue RefurAing Esp. 1.18
U/P. 1.50
` feddi; Seria 19EbA
Tkd. 1.82
G.F. 114.62
kV
it WT80kITT OCr TgR 5/15/6( 650$000 Aa A+ Mgt. 1 2.50 2019 7.520 7.53S 7.91
Ot 1W YORK Ezp. .97
x Q~i►ei;Pdepbre Eonde~ U/R. .50
dills Tkd. 10.00
G.S. 813.97
2 ClAMN 10 NM41Pi1L UTILITY 5/01/86 1500000 Al AA- Mgt. 2.2S 2001 7.400 7.646 7679,
"s~ DYfllfCi~~ Ilet'tric'ReVeane U
Zxp. . 2.75
" ' Serlel~ Q 7.62
G.S. 113.00
~b Yi
4 X m 82 4/25/66 259000 Aa A+ 4t. 1 3.50 2007 7.500 7.S69 7669
k~actr Stem ,Revenua up. 2.60 (1110)
}dpi lierlei i9~6 1s U/R. 1.75
thd. 11.45
C.S. 119.30
#9de Plecedikig Notes
z
rOKPaQATIVE "PSIS OF RECE Y NEGOTIATED KLECTRIC R_VEM BONDS
Sale Size Ratims Gross Max em. Yield Bond Revenue
, . Q1tS f000) M/S&P Spread* I.M I" UP 1}QwjAw*
to CISY,Or Austim 4/24/86 $4920325 Al AA Att. 1 1.00 2014 7.563%
JACXSONVIl.LE ELECTRIC Exp. 1.59
A_VMDRITni Poii Park U/R. .75
4 Syslsaa itevennaafnndiat Tkd. 7.81
'
'.r IRliRlI MAIN POM AGUCY 4/17/86 323,035 Al AA Net. = 2.00 2017 7.75 - 7.55
Pow'e 3u0plp' lefiandina Exp. .72
'R'aV'au `Roods, 1986 v/R. 1.50 4
. Sakltli A 7.76
, G.S. $12.00
~ l
hARID,A(j NICIfjL ?MC' 4/04/56 47,675 8!R !AA Mat, $ 2.75 2019 7.184 7+261 7436
Tr!-city; PtojaEt (AMSAC) Exp. 2.84
~tei~uw 6otlda~ U/R. 1.00
sitlfa'i986 Tkd. a. ii
- G.S. $14.70
4~ lOh CALIrOj*IAIPUBLIC 4/04/86 _ 4S0,010 Al A+ Mat. $ 2.50 2022 7.45 -7.157 x.36
NE `~tlTEORITY rfriu~srleelon ZO. .kb
lre~~ict: 'Yap Rafnddina v/R. 1.32
yoiade, 19tb Sarirs 6 G.S. $i2~.50 t` ;
r. <
I XI
ti *See Ptbcedlne Notis
V ~ "t
.y 7.
livi
COMPARATIVE A_MYSIS OF RECENTLY NEGOTIATED ELECTRIC 2V M 80'4DS
Sale Size gativu Grose KuimlvLyleld Bond Revenue
DaL! L44Q1 WS&P Spread* D yi91d %Lfea coed Indez+~
f NOili`tt CAROLIOA,RASTSRN 4/04/86 $746,200 A A- Mgt. $ 2.50 2015 7.814% 7.90% 7.69%
lbiftelo ?MR A 13 . 1.75
. "over SjOtp RAKentO ids, U/R .75
telWlAis~^eeriN 1y86 A Tkd. 8.19
G.B. X13.19
CITY of RIVERSiD$, CALItORNIA 4/02/86 121,025 As A+ Mgt, a 1.50 2013 7.04 7.015 7.69
Rleatric Revimtis Ronde Rip, 1.70
1sR6 RttOndirlg Serit& A U/R 0.00
2'kd.
s? B.SS
t 9.8. $11.75
. i i
yh MUNIC1pAL lt> dN10'AUM(oA TY 3/27/16 503$17 A AA- Mgt. 2.50 2018 8.004 8.077 7169
-r Or 00101A,, Ce4ral Polder Rxp. 0.00
1,1 Reran Bgadsi' 1986A Sities U/1 1100
8.20
G.S. 11.70
t? IRbRA~)U PUSL1G PM1 ` 3/13/86 76,335 A A+ Kati $ 2.00 2020 7.52 7.494 ' 7.55
u;nY8tR1C~ gave; Aupply an 1.66 talc).
a4 fysltri arms Bonds,, s.175
4
; 956 dtries, $12,60
CITY Of AUSM) T" 3/13/86 545,145 A A+ K6t. $ 1,50 2012 71862 7.719 7.55
K,'Conbindd Utility Ostesut U/R. ,65
Rerrnue Refvading.Rondsj
Atflts 1486 rkd'-.-1`4t
i., O.S. $10,97
p 4
a'Vrecedf,Ins Notes
s.
r. St '
COMPAUTrie mLkbxSIRFCBNILY NECOTIAYBD BLBCTAIC RBVHOB_.BQM
Sale Size Ratings Cross Ka={ Yield Bond Revenue
QAt4 (0001 IU369 _$vreadi D" m" TLSc" Bond Indexa
SAL! RIVER PRWBCT 3/07/86 1638,160 As AA Itgt. 1 2.50 2017 7.25% 7.240% 7.57%
AA416gL11m IMPROVRM M lip. 1.30
AND 20MR2 DISTRIC?,-ARIZONA U/R. 1.00
wt-Riiii Pt6j6dt Electric Tkd 7.70
Revema.'56nol 1986 Series A C.S. $12.50
FLORIDA WMICIPAL ?MR 3/07/#6 254,810 A A- Mgt, 1 2.75 2007 7.393 7.427 7.57
~66MLnce peg.#~.ot R:p. 1.40
} ~.'.1tel,Wh '"R I evemn Bonk s, U/R. 1.00
Setie 1986 O.S. 113.61
;IlOUTNE $ MINNESQTA MRI:'IPAL 3/06/86 ]599260 A A Mgt. 1 2.50 2016 7.50 7.614 7.51
pGliEi!'1`E11CY►" Povir Supply 591435 Rip. 1.32
1600 2013 7.50
S,/At6d 10616ding Revenue Sonm'+~ U/1' 7.84
112.66
s ,ti:',e`Sefi~ie 19t'6 0
HICNIAAM ?mIlc,.P 3R 3/06/86 369,365 Al A+ Mgt` 1 12.50 .21 1018 7.50 7.476 7.57
►AEtiC o" Sells Rlver Protect U/R, 1.00
Ritaldin+ Reveaue Bondy, ndA- 9.49
~~''",1416A'rier A.S. 114.20
0 ;ft Of ANWIK, 3")4/96 1290275 As A+ Ngt. 1 2,2,50 20 2007 7.00 7.006 7.66
C1LlMB11lA EitZEtic U/R, 0.00
'Maine: Bondi, lone 1'kd 9.05
'1966,
also 111.75
See Ptite4lAe !totes
r_•OMPARUIVE M"YSIS OF RECENTLY NEGOTIATED ELECTRIC REVENUE BONDS
Sale Site gatinat Croon Nutinw Yield Bond ReYenUe
MP Snreede _ im I1%1d TISe" Bond Indeze
QliS /OQO)
T86,CITY OF SAN ANTONIO, 2/27/86 $3200660 As AA M6t. $ 2.75 2010 8.000% 7.942% 7.66%
TU" Rledtrie and Gas 10. 1.26
6Yet*" te1rnne Retuadin6 U/R .75
bonds, !few SEriis 1986. Tkd. 8.90
G.S. $13.66
86DTNRBl1.,CAL11601A PUBLIC 2/21/66 3710720 Ai A+ Mjt. 6 2.50 2018 7.938 8.015 7.95
"'"on "AMRi'I'Y j T hal LIP $ 1.07
M~e~A'1~Re~eEt'Revenui. U/R 1.00
Soada, 1966 Retundin6 G~sy lii
'Jet Jos
A
MATT'! 'RIVER PMR AUTHORITY 2/20/36 1130120 Al A+ 1406 t 2.50 2016 7.74 7.801 8609
lip. 2.34
,`-'Elibt",i RerenuA Sands, U/R 1.25
` .,,j 11 r 1 l 6.5~. 118.
oOtRg'd0kiii pokic 2/14/86 1959955 Al A+ Met. $ 2.50 2019 8.20 8.118 8.24
&IONIC* :AmItITT$ - Elettrie 1*0 1.90
=red 3~cpAneiou Revenue U/2 1.00
` l~etde`~ 1466 Rifundl Tkd. 9.31
"LIFONXIA PUBLIC 2/13/96 1579645 Al A+ Met. $ 2.75 2015 8.237 8.242 6.24
A~~i'1'Yi `'covet 1Gtp. 1.76
Frbjeec perAnue Sonde, U/@ 1.00
1966 Ietu6diu6 iMee A Tkd. 7.41
Cpiio Verdd Pro~e~t) G.S. $13.44
She Yfrcedind Notes
,y1M
i
COK A ATIV° Ax~3YSIS OF BRCS LILY NEGOTIATED ELECTRIC REVENUE BONDS
Sale Size R9tinAS Gross Karin Yield Bo ad Revenue
~S {000) M/Si~ Soread! Y48I Yil.1t! T1S* Bond IIldei*
TUS CITY 01' SAN AMNIO, 2/27/86 `320,660 As AA Net. 2.75 2010 8.000% 7.9421 7.66%
"W llectrit and asa in. 1.26
Plattma kefenuA Rehnding if/it .75
boudr, **v'seriee-i986 Tkd. 8.90
C.S. 113.66
i0U EK" CALITORNIA hlglIC' 2/21/86 371,720 Al t+ Net. 8 2.50 2018 7.938 8.015 1495
TOK~ AUiSDIIIi7~ `Yrsni- in. 1.07
Niveana U/R 1.00
Tkd,_1LlZ
.,a ~r,~4t6 lfeftisndlne °
` sti*6 A 9.5. =17.04
YIATh RIVER i'OW9R AUl80RITY 2/20/66 1131120 Al A+ rte' $ 2.350 4 2016 7.74 7.801, 8.09
'J~~~► ' U/III 1.25
isSlictHe Reranie Bonds,
t ;RSrils l• a.3 118
• 2.50 2019 8.20 8.118• 1.21
80tl1M CAREILIIIA,,PUBLIC 2/14/86 1951955 Al A+ Met.
8~'11ICE;Ad'i'NOEIiYj Electric Etp. 1.90
A hri s~i'.E~tpansoa'IIeyenue U/II 1.00
tkd. 9.31
iii` 1916 Aetundlne ;
a:a, 114.11
AblITIfEIN'CALI1'OWA 8i7BLIC 2/13/66 157,645 Al A+ Net. 3 8.75 2015 8.237 8.212 8.24
P4MkR°'AtfltOltYltf 0440 r. Esa. 1,78
'l~r +~16t, s veanf Boi11r, U/2 1.00
° j 18tb Rel1jedii>8`; 81;ter A tlcd 7.91
A (I~eio`Vetde.prb~bctf a.S. $13.44
;;1, dee ~retedine dotes
Y
"'r £~en on Bro4here too
TEXAS MUNICIPAL POWER AGENCY
YIELD PROFILE
WEEKLY DATA - 4/4/85 TO 2/5/87
1!
10
serw till
(s 1
94 r
9 ,
w ,1 atatts
.
• e
7
SeAe1 till
2(l.Ni 7
N a
u
BOND BUYER REVENUE BOND INDEX
SALOMON BROTHERS' "A" TAX-EXEMPT ELECTRIC REVENUE INDEX 30-35 YEARS
Note: The number in pareMheets represents True Interest Cost
t s, ,
.
t
i
THE BOND BUYER Monda;, February 2, 1987
Deal of the Week
Texas Municipal Power Unit Plans
To Sell $423 ' 'on Bonds Today
By Goorge Yadk
tJn6emtten sr,d officials of the when Texas Municipal Power Brews and Tex-La have mopped
municipal Power McM7 ss7 ae owof, Ctoa,anche making their payments for Coman-
la der is
Texas they believe the authority s In- sakes of Ocost It N o e billion end thex. e piyryl1 Peak. urWa peoM ~
volvement in a Wye and trouble- pect Despite these tem. U. IUWiam
some nuclear power plant will not two units were scheduled to come
have a negative effect on no ask lo- on line in T1991 1983, respec• T. Pau. director of nnandal ser• ng's
nici
revenue bonds m~Slkn of re manchePeak is naw estima ed to wa.' Wfor Tt"s e certainly w t an no trying to
Power - y funding about
Thiticy, which comprises the cost 8,126.56 million. upp from an stop the prq*cL We're comautled
esat Taw cities of Bry estimated 8736.6 million last ocam
four rorth =the proJeeL"
an. Denton. CAfUU 0. and Oram Augur. Mr. Mr. Devlin said they
vaile. aria a 6.2% etaN of the Co- But even these new estimates are do not think Taw Municipal Pow.
with C ~
manthir iPeak Weam Electric ~ with all sotlcism iry rromba wset in "pro~t`s nai
waa etehePeak
wets hlea Dios umM. 7 600 says r pnty Y
srA attaetlY esnstnl harttrW before the Nueie• day's bond saw
under asea ommo4tmtlon la owe pyen, u Rr6ule Comaussbm have 'if IntreMara really take a look at
at40 stku astrth.est of trort bssn TMPA - Iratead of looking At it
i ioml"tam in Deoem• Jam u a nuclear land end look
Proceeds from the bard ask will thh4 comatiealsn's at it overall. they win on It's a Valid
be used to refund 8211.76 minloa Arlington. Ter.. office had pm- bond." Mr. Devlin maid. "The few
of Tana Municipal Power's 6erlea 11111re6 its tnapeel if dowr*-*& F04641 hat a» mKmben of the
1960 revenW bends, which have or delete vldadons diaarvaod at re /ood =bars not
crottpons as NO u 9N5. am the plant and that information In clues
6162.7 million d Its Was 1980 same Inspection remoets was uae• Tht agency's share of Comamctw
bonds, whleh hart Inteewt rata up curate and unralle e. In January. Peak is small, he continued, and
to Tea 19W Itsmde w61 bs te• the NRC announced It was aettlm6 '.this to not their only soueet of
dsemsd ee 9"L 1, It180. ~t _ to& up a special Dined to eeadinah J Power " When the two Comanche
mad eta l 06 lands v19 bs n• Its work on Comanche Peak. and Pre units V Into scarlet they win
dasnsd Is t N6 at 102. Texas Utilities to eu+tently call,- oaeefoteyunt for only 9.7% of the auth•
rectAeon al dutatea =atthe °A ~ 81filPsome iealyita express
etldsm about the A-plus rating
ys "d
"We"th"W.A do lead at Sakmmt inc.. in sdMtlom to that data W
on the deal. the Issee reNLtory Pashtos the It a tthrad Mmmdard It Pow's Corp. nu•
,rut tents ivayy con" of aerial also t1a tear of set" PAZ and ramtly ~~wwss to Terw Mumtdpal
8aefld Power Treads Ibedy'a (nveMao
tronde due l9Yl to 2001 and five eeuntetsuw He
term maturities: 8134 million in pants. In adNtam Lmang
to Team GtlLtlta larMa rata the a~gwey A. but said 2006. $26 million in 2007. 9100 and Tam k • two bM agamear Lwy m ewer.
mini m in 2010. 934 million In nurd WOPWIUV" taw kg tMtr ra Alan vice
2011. and 649 million in 2013. nnan pieces of Ckundw P" preeldent and manapr muntrs•
The underwriters insurm may sleet to Ina ~g ~ ocepwou" 1A ~h relaosi at lme. saki t~M beodiwwr•
and bond d bnwratse on the 7007 theatre Coopenitve 0( Tama Inc.. rant only a high trip" or weak
and 2010 bonds, he sWIGade but &
until tfinalhe with dnM•A ra addhV that the se•
dedwon bulds am w~aW m7 UUUUU has a cull peeidlrcl Ur trade mw en t5a adtondary
Like any other U,6. nuclear in van" County district court the market at that levee.
Power plants. Comanche Peak to stake, among Wier things Beth Berman, assistant vice
years behind schedulie and binary mane that the tr,y did not ti- president In the munidpal re.
Of douses CAW budpL Tens VUB. state the ewmaahlropanotntrad with search deartment at I.Y. Roth.
ties Electric Co., the manager of the its Comanci-4 pea Poidnera and ached. Unterberg. Towbin Joe...
PewratMpajarofan anion A~ that practices in ?lint ItoM a&a weasea
_ November d "unp of almost 40% in The partners have the At this of CeLmsncht Ptak U
the emlmal - Completion coat d
the p oJect . to 96.27 bitlbn, not also wed Texas Utilities in district forciry the o use: mat mg.
fm new
Inclugftfue was-fromi nesll• courts in Danes and Travis coun• 1y
mate (1 93 " ..ribn the you before. ties. WWOng that varlioue Impropee• start-up dote for the plant "ham to
The utulty also said mroleet 1. ciiN by Tres company led to the do. be vice with soma skepticism
lays end eoet Increases at glvaithafactnaydon'thaveadate
wMch Is virtually completed wall
not p tno service unt9 earl 1909 Comanche Peak and asking that for the reepanltg of the Bemstrg
• and that ixalset 2. about 8 1 M• the ornenhlp contredts be voided hearings."
Ished. wt not oome on line before that money be refunded. and that Tex" Ut UG@' debt rating was
fall 1989. other monetary damages be cutby Standard If Poor•senoft. 9,
ewar&& to 111111111111-plus from A. Moody'e, hew.
ever. which sW In November, that
it rat raviewig the company for a
Apo" abed twdawdo+> ~ o~ot' 14 row its
THE BOND BUYER Tuesday, February 3, 1981
The
Municipal
Market to yield 6.067%. These bonds The 650 truMon Series B bonds
wLL carry a nUnB of AM from matuM In 9018 have been tenta-
SunderQ A poor•e, Uvcly at "14 se G%a to yield
By William 1. Ryan The 6129.6 oulhoo at uninsured 6.186 The Series A bonds in-
- - term bonds Includes: 6143.3 md. elude 629.3 aullion term bonds of
bon due MM priced at as 2010 tentatively ofremd at 99A as
Prices Decline 7.10s to yield 7,148%: 636.4 m0• 6%H to yield 6,667% and .374mil-
bon maturlnd In 2031 offered at lion aerial bonds priced at par to
9941 u 71s I yield 7.194%: aAd yield from 3.9% In I M to 0.3% In
For 2d Session 640.6 million original Issue &a. 2001.
count bonds of 2013 in dollar bond tm&ne~teraay.
TM the iatest Municipal Antatanee
As $0050 Million 60.51.. SVA to yield 7.4 %d at
yields for the 678.6 MMM UAW- 6fie of 2007 alined to 96N•
Reach Market .urea aerial. bonds tun from 6% In +r. their yield to 6.99%
1991 to 7%in 920I withal) maturi• from 6.94 . Tha older 7s d 2006
tla piced at par. The unlnuned dropped to IM 100%. Ift their
Mnde he" been ntsd A by return to 6.90% from 6.96%. New
Prteaa of tax-exempt securities Moody's and A•plus by Standud A York Qty Municipal Water Finance
declined for the axs-d =20t Pwx't. Authority 7ad2014doebrdto90•
01" bl( Stamm in the ateond&T The order period for the brads 901x, wtth the yraM rWae to 7.00%
mantel yesterday as 6660 million was scheduled to tlIe~rvdMte at 5 from 7.03%.
were ltntatlwly priced in the new. p.m. WT YesterdaThurda7a~ tntarmide of NOW York mar7keL
~"'ea or ' tfxu Award from the bond aalr will doe 2016 rail to 1024-1 to
T d d
wes~yha in~ie the muntel be io e uad to refund *21 1.6 anltuon 7.25%. up three basis parxto rom
me was NA o the 3ared Seri. 1060 revenue s bonds. which rrtaay'a cleat. And ee~nclheem cab-
dwneed d Wa we~'a sales a& have y$2299 mbilbonn and 1116t~ Wootof SeAea1905 drtPublic ppad MvereMK 091{ . 6%4 at
flnoadrtrw taro~y~ay to nbonds. which e b eld~i wt„U te rump uiMrr fAalr nhrs 1e 6.64% horn
domunatd flit dsiry esrkeL deemed on !es>< 1. 1000 at 103. A•0~
_ and their prices ~ pod on and the 198 .bonds will be n•
awry.. In ilia h tp41 narbeL deemed in x906 at 102.
an pnrdmtdse fables row In another netodatd financing
wepe~nts MAY in the day ar• underwriters led by L.F. Roth.
tae about riu minors tame out hr whlld, trnlerbn4 Toerbal tree. r#-
the bid. Parris Of the more trdl• ltaad terms f« then
lsonat Sendai ebtlBatlta best eM d 6319. mlitioa t~IBer•
were ty ye~ film FAdaY't Me- n4 8ta tabus works Board SOW
r~ tic but Mats pafaaalara were revenue bonds rw a state prises at
swede3ed by N to 14 point. In the Wl NorN. These bonds haw n•
J short•Lrrm market tats yields Mae celvd rallrip of AI from Moody's.
five t9' 0 bYlt points on the day. M from Standard A Pews. and AA
The M33.2 million Tea" Muefe• from Fitch In"Mors Service.
Ipd Poorer Aeedcy rduridlet~ tww• The 1106.9 mullion term bends
nut bond afferty teppd the maturi in 9009 haw been tents.
tfald s3at 18 4 Mt. a 09 u UM dto Fists
msrkt d by td w a astlt pa 8.688 The u63 saltines ww,
hold Inc beads an taI offarad at p!► to
' d t1 awl tans `mwsdelll ei ~oe1 .O a i6 tb:u~+ Laken u until
uni"mid bonds. noon UT today the format
The 0100 million ura Vnal team award is expwW Thursday. . Vid me
~beclAd by Bond Inn iortrl O st. son Wood WalkartrtMe an Ma3t a
ant hlsuranee Co r was tenta• sewn) jratrp fat 8106 caution '
Uv j reed at 01.4Y2 u 6148 ta more peo~el and nefuridlrie teve•
by YlelaE~C These bonds an raid nut pa" film/ $atom f&ellltlea
a + and k%A byY btndrInvestors Po~or's Theame' ~ bends ben wilt be insured rby the
Gx~ Financial oul filmy In urance Co.
.1 the 025 nt6fon tefm bonds due and carry mays of Au from
2007 backed by AMBAC tneltm• Moody-I and AM (roe Standard A
nby Coq. - art offered at of as Poor's.
i January 30, 1987
Saw" BrothKS Inc
E One Now Yak PiK&
New York NY 10001 Richard L Johannesen, Jr,
1212) 717.7000 Barbara Cannon-Jones
Peter
Michael
el Y, Fung
Nancy L. Jerome
Most sectors of the bond market posted only small net price changes on this
week. In the Government market, the Treasury yield curve flattened by nine
basis less than
points to 183 basis points; long-term bond prices fell by slightly
r-term securities. The Treasury announced its quarterly
prices o point
short
refunding package; S 10 billion of three-year notes, $9.75 billion of ten-year
notes and 59,25 billion of 30-year bonds for auction on February 3 4 and S,
respectively. In the mortgage market, yields rose from cyclical low Sevcls - the
first setback this year.
Most short-term interest rates rose by 5 25 basis points this week. In the
foreign exchange market, the U.S, dollar fell to a seven year low ow against the
, e in the week following the release of better-
Deutschemark but rebounded lat
` t than expected trade statistics and reports of U.S. intervention in the exchange
markets.
corporate bond prices were unchanged to slightly higher. Most new issue yield
i levels were unchanged to 13 basis points higher on medium-term issues and
unchanged to slightly lower on long-term bonds. Although well behind its
M record 1986 pace, new issue volume in January was not insignificant at $11.4
u billion.
In the municiplal market, active seasoned electric revenue bond prices rose by Gen
increased
:ales
35 ticks.
sis n futures market, the Mation OB pread increased by 50 ticks oaa ppoints. In the
Martlsl Hiphlighls (Week Ending Jsnusry 30, 1951)
Oiou Pr cn9
Clore Dhg 9 1 i
120P Yed Tarn Naw A Pin 1O Vi 0.000%
Pad Fund, Ell Rate stet WY Av01 t1 MaQ 7am10NMA 0% 1
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Ctprr
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pppaaa 1-Mo Traas alts laid Disc) LU of Now-Munl Prima 00 ~ 10
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j r ~~•'rr~ more 26 fua 27 Wed 26 Thu 29 11 130 cho wk
u f Ub9
Hd Funds PRa E11 W. 6,11% 6,11% 8.10% f,1~ %a
t~ 2.146 Tree 1310 (DIOIln' Did) ap ~;4 0
1tr'~~ 20•Yr Tnaa D6hd ICIOS 69 aid) 7,17
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Antra t onba Lone norm ~ ,X
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~ ~ cCtl t,~;stN # s #kn~ak iat :tea t~e dd
tOfs
§ I
y ,
I
Munlcipel Bondy
Yield Cnpo Peet l2MOa Mild SpwaI (b
29,1347 WF High low 29Jan87 N'M_IWMa Max Avg Min
New Issue 3colpd Inrromarkef -
C pl; -0 G'a9e GU 6MONYSv1 Mpg I Note -10 -S -10 20 -10 -50
I I Yr 3,50% Dbp NO 3.M New Lg.Medvs Pr meGO 35 0 -5 100 47 20
3-yr 1.05 S NO 3.90 ARevveMedGO 3S -5 10 60 33 -00
$-Yr 4.55 5 130 1.30 ARerv%AAElec Rev 10 0 0 47 23 5
10 Yr $ /5 S 7,00 1110 Put VS GO.1 Yr 55 -1 -27 102 66 11
15 Yr 1.05 $ 710 00 Put"00-3 Yr 61 -1 -26 112 72 32
20, Yr 6.15 5 7.95 6.10 Put YS 30.5 Yr 53 -6 -33 220 106 Sr
30 Yr 110 S 7.73 6,35 prime Yld Curve
6fed-Grade GO 1-Yrvse-Mom'911ii1 20 •5 -13 65 24 -t0
30 Yr 4.75 S 110 170 10-Yr r91-Yr, 193 S 0 21S 190 120
Revenue (Long) 20-Yr VS 10-Yr 70 0 0 65 60 35 ~
3-Yr Put AA 115 f 7.00 1.20 30-Yr re 2o-Yr 25 0 S 10 11 S 1
EIK AA 7.00 0 1.13 7.00 30-Yr ve 1-Yr 290 5 S 333 262 900
EiK A 7.10 0 S." 7.10 Intermarket ~ i
Wtr Sew AA 0.10 0 637 I,ad AS%GOVf{Arefax)
Steh HFA A T.25 S 1175 7.20
I Hasp A 7.25 10 S.75 f.15 DATES TI t 133 20? f5 SS
as 59
I eP.C. A 7.20 S 6.75 T 5-Y r ,1! 1•Yr Migl Prime GO 61 65 0 2 -2 -a 12 u 14 6S
o Se P C oned !slues
GGU 10-Yr Prime 00 TI -1 -3 It 42 74
onOBvYer 1.51 2 1.01 8.51 30-Yr Prime GO Be 0 -2 99 90 72
208
ale 7%8 de S AM 1.12 S 7"11 6.54 LgAAElecReves%U S. 91 0 -1 109 91 IS
Ma
avenue Prima as %AA Util TI 0 0 12 75 70
259orJBuySr 4.94 4 131 192 NewAUtIIPCve Corp -160 13 30 -100 •.14 -215
" Inc PC 6Y A 1.92 0 ISO 6.92 pr
EIK 7'1% A 7.270 2 9.5210 fASb Amt Coup- Ducts Clq
Each%e A I." 0 161 6.99 (Mil) "#U* Mat. 29Jan67 Wk
r y HFA(SF v-krAAA-AA 8.4110 0 1.7310 Ntb
HFA ISFl16%C A 141 0 134 111 Recently offend MunIl l Bonds
w Put801- r AAA, AA /.OS -1 1.02 1.02 $681 Al MAC Senes et 15.07 01 - %
3-Yr AAA- AA 4,86 -3 1.72 4.56 233 Beal N. Y.C. Wit. Sort. 7 -14 49,1E IS, 1
1 5-YrA" AA 5.08 -4 $.1e 5107
v5 Ina30-Yr(li AM 6.+5 0 125 gas Seasoned Aclhely Taded Aevenw lea W6
Mullklaafoor wfunez $485 A MAC Series 57 7%46 102'.4- is,
6Ond r ufuros irides 200 Beal N Y C Y.1r.Swr. T2r16 111 4 a
Price 102.11 -13 102.37 10-02 271 A Mum! .ElecAutll,Os. 71wt/ 104Sk %
% J Yield 7105 5 8.17 7.00 370 Al Mir Pub Pwr.ArCy f -10 91 1 4
, 1 .0 107 a
140 Serial 00 ,dy 4
Mu ire pga Bond Futures Control: Id 232 A r. f •M
4tvninLpOB u p 201 -190 202 A 0ACertea 102 i
i
F bweLie 2 Feb ll W 8,11 an Chi on Yk 1113 Medoff
. i - a Salomon Brothers Inc Indexes', estimates for new issuer, avenges for seasoned Issues. to Less then 12 monlt.6
hlatery . C prkes expressed in points and 321de of a Cdill, Change on week Is In 32nds. d Nearby conlract.
Issue came this weak, it In 32n dr. A Australian Dollar
r New Noise and Bonds Corntnq Next Week
I
r:
O9wmmenl and AgentHs MunklpeH f More thin 120 mrlhom)
5 3reb $10,000 US. Tres 1.NIS dui Fab 15, 1980 VA 2 f•b 135 Cit of Lakeland, Florida
1 Volt 9.760 VS. Trelas Nis III Nov. 15, 1996 Wk 2110 120 Taxa5 Mum i.Pwr Agcy,(Ret Ray lids)
Vale 9,260 U.S. Tress . Bde. due Nov, 15, 2014 Wk 2 Fob 140 Texas MI . Part. Agcy DATES
Wk 2 Fab 105 Baltimore, Md. Mayor 1 City CounclI
' Cerporafea (In Registration, on Bebal'of Will 2 Feb 320 State I Wks. Bd. of state or Calif
fssusr-Prapecrus on Request) Wk 2 Fab 52 New York Slate Dorm. Aulh.
Wk 2 Feb 1160 Masco Induetri Sr. Sub Nls, 1997 2 Fob 33 Utah Hap. Fln AgDcyy
1 Feb 150 Duke For, Co, 1at &1 2017 3 FO 29 Clark Ca, NovsCa Nwy. Rev,
r Nolo. Qu9Aion$ concerning date should be directed to the Bond Markel Research Dep6r1menl (212) 147-1040
v, -
e Salomon Brothers Inc 1867
ARhouph the Information in this report has bean obbinsd from scurces which Salomon Brothers Inc Oetievea to
5 be tellable, we do not guagntes its accuracy, and euch information may be Indomvlate or condomead All
I { opinlone and minutes Included In 11116 report constitute our JudGmenl to of this dale end an Sub!edt to change
wllhout notice. This report H for Information purposes only and le not Intended me an offer or solicitation with
-t9 v - respect to the purchase or tats of any escurity.
e
c•
1
t
t
i w Salomon Brothers Inc
1 t Member W the New York Stock Exchange, Irrc
One New York Plaza
A New York, N.Y. 1 DD04
t
t Comments on Credit
January 30, 1987
Breathing Space for the Refunding. The influence of International economic
developments on the U.S. bond market was spotlighted this week by the sharp
t gyrat'ons in the value of the U.S. dollar: Nervousness about the forthcoming
" Treasury refunding heightened as the dollar plunged to a seven-year low versus ;
the Deutschemark early In the week. Concerns, however, subsided by week's
end in response to several developments, Including unconfirmed reports of U.S.
official intervention in the foreign exchange markets, better-than-expected U.S.
external trade statistics and signs of further monetary accommodation abroad.
Although these factors have lessened the need for emergency action to stabilize
the dollar - such as a meeting of the Group of Five - and have substantially
Improved the outlook for the refunding, uncertainties about the dollar wilt persist.
Of these factors, reports of U.S. Intervention were the least convincing. It seems
likely that such Intervention would have been accompanied by official
confirmation, which places exchange markets on notice and thus underlines
Intervention. Even if the U.S. had intervened, the effects could only be sustained
d Y. if the intervention were consistent with the underlying fundamentals.
` In this regard, the merchandise trade data announced on Friday should alleviate
concerns that the U.S. external trade situation is worsening. It Is, howevor,
premature to conclude that a fundamental turning point has been reached: The
;10.7-billion December deficit could be revised upward, given substantial
revisions in the preliminary data. Moreover, West Germany and Japan report
record surpluses for the month.
A major concern for the U.S. bond market has been temporarily alleviated by
f,^ signs of further monetary accommodation abroad: Following last week's SO-
basis-point reduction In the discount rate to 3%, the West German authorities
this week paved the way for a similar decline in the call money rate by lowering
the effective floor. Although the Japanese authorities have not announced a
f p discount rate cut, the Japanese bond market has anticipated such a move. The
18 • Salomon Brothers Inc 1901
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4
I
Corporate Profits: Outpacing Expectations. Surprises on the earnings front are
likely to be favorable this year. Compared with the 1986 figures, pretax profits
should jump by 160/a in 1987. After-tax profits, however, will be up by less than ~t
half as much as pretax in 1987, as tax reform continues to shift the burden
of taxation from Individuals to corporations. By 1988, that shift will be more
or less complete; thus, the gain In after-tax profits will begin to outpace that
in pretax profits.
Despite the tepid econorr-lc growth forecast for 1987, earnings will improve
because of the following: The continued scaling-back of break-even points has
created sufficient operating leverage to bring profits per unit of output to levels
that have not been seen since the 1950s, Ear'i-retirement programs and low
wage and job growth will keep labor costs down. In addition, lower interest
rates and refundings of high-coupon debt will continue to reduce debt service.
A gentle rise in inflation from higher oil prices and the impact of dollar weakness
on Import prices will also boost pretax - or "hxk" - prof,ls because that
earnings measure also Includes Inventory valueGon profits.
a, As in 1986, however, rapid earnings growth will not be uniform across all sectors.
Profit growth In the financial services industry will slow, as Interest rates stabilize.
f In the manufacturing area, operating earnings in two of 1986's big losers -
oils and automobiles - will stabilize, aided by the firming in crude oil prices
and the end of the automobile Incentive wars. In contrast, operating leverage
will keep the growth In wholesale and retail trade earrings strong, despite She
r i expected slowdown in consumer spending.
Henry Kaufman
V i
Sonlor Editor This Weak Junes McKeon.
Contributors, by article: John Lipsky, Nicholas Sargon. Richard earner.
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.r AHh"h the Inlurmation in this report has boom obtsl nod from sources which Salomon Erolhers Inc believes
t 'c to be reliebre, are do not uarantoo He accuracy end such InformHlon may be incomplde of condensed, All
51
opinions and estimates Included In thle report wittituls our Judgment u of We date end en subject to change
µf , r without notice. TMs report Is for Information purposea only and a not intended as an offer or solicnatlon with
reaped to the purchase or mall of my sacudty.
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