Prudential Securities syndicate buys stadium issue at 5.761%

April 24, 1996|By FROM STAFF REPORTS

A syndicate headed by Prudential Securities Group won the bid yesterday to underwrite $87 million worth of bonds for the Baltimore Ravens' football stadium at an interest rate of 5.761 percent.

Maryland Stadium Authority Chairman John Moag said he was pleased with the interest rate, but said it was higher than it would have been had the bond sale not been delayed by opposition in the General Assembly.

"We did have more favorable market conditions three or four months ago," Mr. Moag said. If the sale had taken place earlier in the year as originally planned, when interest rates were lower, the authority may have saved about $500,000 a year in interest, Mr. Moag said.

Prudential has three local partners in the deal: Legg Mason Wood Walker, Alex. Brown & Sons, and the Chapman Co. The bonds mature in 30 years and the state will pay about $90 million in interest over the term.

Seven bids were submitted, with the high bidder offering 5.833 percent. Underwriters in such sales guarantee the Stadium Authority the total purchase of the bond issue and then resell the bonds to investors.

Pub Date: 4/24/96

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