Municipals improve with Treasuries; University of Connecticut prices $342.35 million G.O.s

By Sheri Kasprzak

New York, April 7 – Municipal prices rose on the session, buoyed by stronger Treasuries, market insiders said.

Yields on top-rated munis fell by as much as 7 basis points, even as Treasuries saw yields shrink by as much as 6 bps.

Continued economic strife abroad sent investors in search of safe havens Thursday.

The 30-year bond yield fell by 5 bps to end the session at 2.67%, and the 10-year benchmark muni yield fell by 6 bps to 1.68%.

Meanwhile, the 30-year and 10-year Treasury yields fell by 6 bps to 2.52% and 1.7%, respectively.

UConn brings bonds

Looking to new issues, the University of Connecticut hit the market with $342.35 million of series 2016A general obligation bonds. The deal was upsized from $340 million.

The offering included $261.84 million of series 2016A G.O. bonds and $80.51 million of series 2016A G.O. refunding bonds.

The G.O. bonds are due 2017 to 2036 with 3% to 5% coupons. The refunding bonds are due 2071 to 2027 with 4% to 5% coupons.

The bonds (Aa3/AA/AA-) were sold through senior manager Jefferies & Co.

Proceeds will be used to finance capital projects for the university and to refund existing bonds.

Dartmouth brings taxables

Moving to the taxable bond market, Dartmouth College of New Hampshire released details on its $250 million taxable offering.

The bonds (Aa1/AA+/) were sold through Goldman, Sachs & Co. and BofA Merrill Lynch.

The bonds are due June 1, 2046 and have a 3.474% coupon price at par.

Proceeds will be used for general corporate purposes, including financing or refinancing capital improvements and the refunding of $100 million of the college’s $250 million outstanding series 2009A taxable bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.