 The bonds will have an eight-year final maturity with principal
payments of $100 million due in 2014, $300 million in 2015, $600
million in 2016 and $900 million due annually from 2017 through
2019."This strong demand has led to a lower-than-anticipated
interest rate, which will save the state tens of millions of dollars
over the life of the bond," said David Vaught, director of the
Office of Management and Budget. "Investors have expressed
confidence in the actions taken by the Quinn administration to
tackle the state's budget challenges that have been created over
decades of fiscal mismanagement."
A total of 128 individual American, European and Asian investors
purchased these bonds. Purchasers included large bond funds,
sovereign wealth funds, global insurance companies, banks and hedge
funds. Demand exceeded $6 billion, with more than $520 million in
demand from international investors. The oversubscription resulted
in an attractive all-in cost of funds for the state.
Thirteen banks participated in this transaction, including
Goldman Sachs, Loop Capital and Morgan Stanley, which served as
joint bookrunning senior managers. Mesirow Financial and William
Blair served as senior manager. Peralta Garcia Solutions served as
financial adviser to the state in connection with this financing.
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"The fact that we had significant domestic and international demand
for this bond offering reflects the market's view on the improved
fiscal condition of Illinois," said John Sinsheimer, director of
capital markets for the Office of Management and Budget.
This is the state's second issuance of medium-term notes for its
pension system.
[Text from
Office and Management and
Budget file received from
the
Illinois Office of
Communication and Information]
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