Want to get some of the tax exempt bonds that are funding Silverstein Properties Inc.’s rebuilding of the new World Trade Center site?
Good municipal debt offerings, like hot IPOs, are usually reserved for clients of the underwriting syndicate.
Equity IPOs get all the press but it’s new muni bonds which are quietly allocated to the “high net worth” accounts and left there to spin off a multi-year stream of interest.
Clip some coupons anyone?
Goldman Sachs is planning to lead the underwriting of $900 million of Silverstein bonds next week. The bonds are expected to yield ~5.11% for 30 year bonds. Comparable US Treasuries are paying ~4.64% and their interest is subject to federal taxes.
Standard & Poor’s has rated the offering AA-, a high investment grade rating.