Utah to Issue $200 Million of Bonds to Finance Single-Family Housing
By Zaeem Shoaib
The Utah Housing Corp. is offering $200 million of municipal bonds to help provide financing for single-family housing.
The corporation will issue $80 million of 2024 Series I fixed-rate bonds due 2026 to 2055 that won't be subject to the federal alternative minimum tax, and $80 million of 2024 Series J fixed-rate bonds due 2025 to 2055 that will be federally taxable.
In addition, the corporation will issue $40 million of 2024 Series K variable-rate bonds due 2055 that will be federally taxable.
Interest on the federally taxable bonds is payable on each Jan. 1 and July 1. Interest rates and yields on the debt have yet to be determined. The bonds are expected to be delivered Nov. 20.
The Utah Housing Corp. was created as an independent public corporation of the state to assure an adequate source of capital for housing low- and moderate-income people there.
Proceeds from the single-family-mortgage bonds, together with other available funds, will be used to finance the purchase of certain certificates from the Government National Mortgage Association, Fannie Mae or Freddie Mac. Proceeds will also be used to help finance down payments, closing costs and interest rates, and for other purposes.
The corporation produced $1.27 billion of new single-family loans during the fiscal year ended June 30, up from $732.5 million of loans in the prior year.
Moody's assigned the fixed-rate bonds a rating of Aa2 and has assigned the Series K bonds a rating of Aa2/VMIG 1.
RBC Capital Markets is acting as the lead manager on the issuance.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
October 08, 2024 14:25 ET (18:25 GMT)
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