Municipal Electric Authority of Georgia
MEAG Floats Price Talk on $439M Offer; Assured Wrap Could Reduce Yields for Project M, Project J Bonds Below Insured Bonds From July 2022 Sale
Tue 01/10/2023 17:06 PM
Goldman Sachs gauged indications of interest today in the Municipal Electric Authority of Georgia’s, or MEAG’s, $439.26 million Series 2023 bond offering, according to market sources. The deal is split into four types of bonds, with Assured Guaranty Municipal Corp., or AGM, providing an insurance policy to two of the series, as listed below:
- $127.97 million Series 2023A Project M tax-exempt revenue bonds (AGM will insure all tranches with the exception of the 2048 through 2064 maturities);
- $184.42 million Series 2023A Project J tax-exempt revenue bonds (AGM will insure all tranches);
- $59.445 million Series 2023A Project P tax-exempt revenue bonds; and
- $67.435 million Series 2023B Project P federally taxable revenue bonds.
MEAG was last in the market in July 2022 with a $375 million offering. A line chart comparing the two deals is below. The AGM policy could reduce yields for the current transaction below those of the insured July 2022 bonds. However, the taxable bonds and uninsured tax-exempt bonds could price wider than the July 2022 transaction.
The chart below displays eight different bonds with the top row of the legend labeling final pricing for the July 2022 transaction. The bottom row of the legend labels price-talk for the current transaction:
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