Dec 17 Pennsylvania sold nearly $289 million of
parking revenue bonds on Tuesday - a critical component of the
recovery plan for its cash-strapped capital city Harrisburg.
The deal, from the Pennsylvania Economic Development
Financing Authority, included three series. The largest was
about $119 million of bonds with a triple-B underlying rating,
insured by Assured Guaranty Municipal Corp, that sold with a top
yield of 5.45 percent on bonds maturing in 2044 with a 5.25
percent coupon during institutional pricing, according to
That is 131 basis points above top-rated municipal bonds on
Municipal Market Data's benchmark triple-A scale, MMD analysts
said. But the large penalty is in line with yields on other
triple-B rated muni debt.
The bonds were sold through lead manager Guggenheim
Securities. Two series of junior lien parking revenue bonds, for
about $99 million and $70 million, also priced.
Harrisburg's recovery plan, approved by a court and crafted
by the city's state-appointed receiver William Lynch, calls for
the city to lease up to 10 public parking garages and four or
five public parking lots, and for a franchise agreement for
about 1,250 metered spaces.
Proceeds from the bond sale will be used to pay down some of
the more than $362 million of debt incurred by Harrisburg
because of its troubled trash incinerator. The mountain of
incinerator debt pushed the city into bankruptcy in 2011, but
its Chapter 9 filing was later thrown out after state lawmakers