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SPRINGSTED <br />INCORPORATED <br />PUBliC FINANCE <br />ADVISORS <br /> INFORMATION BULLETIN <br /> TO <br /> SPRINGSTED INCORPORATED CLIENTS <br /> <br />The market continues to be in a state of shock. The BBI on the 27th rose another <br />20 basis points to 9Jilt%. It is just assumed each week will be a new record, <br /> <br />On Friday Citibank of New York raised the prime to 19¥~. This was followed by <br />other banks going to 19~. There is prediction of a 20% prime before the week is <br />OUt. <br /> <br />The proposed legislation in Minnesota to raise the rate ceiling is in the Tax <br />Conference Committee as a part of the general Tax Bill. At the moment it appears <br />the ceiling will be raised toi2% with a sunset on December 31, 1982. If nothing <br />more is done by the sunset date the rate will go back to 7%. Assessments may <br />carry interest at I% over the maximum rate. As of now 12% will take care of most <br />but possibly not all Issuers. <br /> <br />The delay in raising the rate limit has been so long that a crunching backlog of <br />offerings has been built up and if loosed upon the market at one time will give it <br />further indigestion. <br /> <br />If you are ready to go to market we hope you will understand if we may recommend <br />temporary postponement of your sale. The !ogistics of the situation may simply. <br />allow no other viable alternative. There are some of you who must go just as soon <br />as possible or lose construction bids and so may need to have priority. To put <br />everything on a market which has had almost no activity for.one and one-half <br />months could create chaos, to everyone's loss. <br /> <br />Following ore some recent sales: · <br /> <br /> Final <br /> Amount Issuer Type Maturity Rating Rate <br /> 1,835,000 Clarkfield, MN G.O. Nursing 2005 Baa 9.~7' <br /> Home Revenue <br /> 1,630,000 Chisholm, MN G.O. Nursing 2005 Baa-! 9.60* <br /> Home Revenue <br /> <br /> 7,000,000 Eau Claire Co., WI G.O. Corporate 1999 Aa 8.39 <br /> Purpose <br /> 2,365,000 Hudson, W! Mortgage 2002 NR 10.t~3 <br /> Revenue <br />$13,000,000 Wausou, WI G.O. Promissory 1985 Aa 9.1,,6 <br /> Notes <br /> <br />* These issues were outside of the 796 lfrait. <br /> <br />I April 1980 <br /> <br />800 Osborn Building, Saint Paul, Minnesota <br /> <br />55102 (612) 222-4241 <br /> <br /> <br />