Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Goldman Sachs Group Inc    GS

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Univ Of Pennsylvania Nabs Lowest Yield Ever On 100-Year Bond

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/30/2012 | 12:28am CET

--University of Pennsylvania sells first 100-year bond

--Yield of 4.674% undercuts Caltech deal from last year

--UPenn will use proceeds for energy-efficient projects

 
   By Mike Cherney and Patrick McGee 
   Of  
 

The University of Pennsylvania achieved the lowest yield on record for a 100-year bond issued by any university or corporation, according to a source familiar with the deal.

The University of Pennsylvania bond, scheduled to mature on Sept. 1, 2112, priced at 1.40 percentage points over the 30-year Treasury rate, a term sheet showed. Its yield was 4.674%, undercutting the 4.744% achieved by the California Institute of Technology in November. At the time, Caltech officials said they believed they had achieved the lowest rate ever.

The issue was increased to $300 million from $250 million on Thursday.

Universities have been active participants in the century-bond market in recent months to take advantage of some of the lowest borrowing costs in decades. The taxable market provides more flexibility and fewer compliance costs than the municipal bond market, so issuers are willing to give up the advantages of the tax-exempt market.

Stephen Golding, the university's treasurer, said this is the first time the institution is issuing a century bond.

"We've been very judicious in our selection of opportunities to go to market," he said, calling the offering "a very strategic move."

Universities with large endowments manage their assets over the long term, so they can justify borrowing over the long term too, said Andrew Hofer, managing director at Brown Brothers Harriman.

"They view their endowment as a 100-year asset, so frankly when universities borrow they are leveraging their endowment," Hofer said. He noted there is a sizable community of investors interested in hedging potential deflation with ultralong-term, fixed-rate debt.

Last week, the university's board of trustees authorized a sale of up to $350 million in bonds "to take advantage of the market," for a term up to 101 years and bearing a fixed or variable rate, according to its website.

The proceeds will go toward the university's "climate action plan," allowing the school to complete more energy-efficient projects more quickly.

In February, the University of California system sold $860 million in century bonds, increasing the size from $500 million after getting strong demand from investors. In 2011, the Massachusetts Institute of Technology, University of Southern California and California Institute of Technology sold century debt.

The dominant holders of century bonds are U.S. mutual-fund investment managers such as the Pacific Investment Management Co., according to data provider Ipreo.

In analyzing four recently issued century bonds from universities--Ohio State, MIT, Cal-Tech, and the University of California--the data provider Ipreo found mutual funds own 86% of the issues, which total $845 billion. Insurance companies own only 4%; investment managers, municipal pension funds and others own the rest.

By region, 90% were held by U.S. firms.

The top century-bond holder of the four university deals is PIMCO, with $200 billion, followed by Manulife Asset Management, with $169 billion, and Aviva Investors North America, with $70.9 billion.

The bookrunners on the deal are Goldman Sachs Group Inc. (>> Goldman Sachs Group, Inc.), Morgan Stanley (MS) and J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.). The debt is rated Aa2 by Moody's and AA+ by Standard & Poor's.

-By Mike Cherney and Patrick McGee, Dow Jones Newswires; 212-416-3163; mike.cherney@dowjones.com

Stocks mentioned in the article : Goldman Sachs Group, Inc., JPMorgan Chase & Co.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GOLDMAN SACHS GROUP INC
11:07a Goldman Sachs files $1 billion countersuit against Indonesian businessman
08:48aDJBankers Cash In on Post-Election Stock Rally -- WSJ
08:40a GOLDMAN SACHS : files $1 bln countersuit against Indonesian businessman
07:21a WHEN THREE BECOME ONE : Sports Direct splits from its top brokers
01:15a GOLDMAN SACHS : Trump’s Election Was A Buzzer-Beater For Goldman Execs&rsq..
01:08aDJBankers Cash In on Postelection Stock Rally
01/23DJGoldman Sachs, Morgan Stanley, J.P. Morgan Executives Have Sold Almost $100 M..
01/23 WIKILEAKS : Trump lied on tax returns, help us release them
01/23 GOLDMAN SACHS GROUP INC : Post Earnings Coverage as Goldman Sachs' Q4 and Annual..
01/23DJMORGAN STANLEY : A Raise at Morgan Stanley -- WSJ
More news
Sector news : Investment Banking & Brokerage Services - NEC
08:48aDJBankers Cash In on Post-Election Stock Rally -- WSJ
04:47a Takata shares lose nearly half their value in less than a week
01:08aDJBankers Cash In on Postelection Stock Rally
01/23DJGoldman Sachs, Morgan Stanley, J.P. Morgan Executives Have Sold Almost $100 M..
01/23DJBlucora Names Ex-Fidelity Executive CEO of Brokerage Unit -- Street Moves
More sector news : Investment Banking & Brokerage Services - NEC
News from SeekingAlpha
01/23 Bank execs use post-election rally to ring the register
01/23 Buying Big Banks For My DGI Portfolio
01/23 Breakups may still be on agenda for big banks
01/23 Buffett's New $10 Billion Deal
01/23 Revisiting The Nvidia-Goldman Sachs Transaction
Advertisement
Financials ($)
Sales 2017 33 014 M
EBIT 2017 12 008 M
Net income 2017 7 821 M
Debt 2017 -
Yield 2017 1,20%
P/E ratio 2017 12,63
P/E ratio 2018 10,84
Capi. / Sales 2017 2,80x
Capi. / Sales 2018 2,69x
Capitalization 92 521 M
More Financials
Chart GOLDMAN SACHS GROUP INC
Duration : Period :
Goldman Sachs Group Inc Technical Analysis Chart | GS | US38141G1040 | 4-Traders
Full-screen chart
Technical analysis trends GOLDMAN SACHS GRO...
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 244 $
Spread / Average Target 4,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Lloyd Craig Blankfein Chairman & Chief Executive Officer
Harvey Mitchell Schwartz Co-President, Co-Chief Operating Officer & CFO
David Solomon Co-President & Co-Chief Operating Officer
James A. Johnson Independent Director
William W. George Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
GOLDMAN SACHS GROUP IN..-2.83%92 521
MORGAN STANLEY-0.69%78 584
CHARLES SCHWAB CORP4.36%54 604
CITIC SECURITIES CO LT..2.18%28 252
NOMURA HOLDINGS, INC.0.94%23 462
GUOSEN SECURITIES CO L..--.--%18 006
More Results