Municipals slide slightly; Maryland Transportation brings $549.39 million in revenue bonds

By Sheri Kasprzak

New York, Dec. 10 - Despite a couple of weeks of strength for municipal yields, yields were seen off slightly on Thursday as investors turned their attention to the large supply in the primary market.

"We're feeling a little weaker," said one trader reached in the afternoon.

"The short end is feeling the worst. Yields there are up by 2 or 3 basis points. The long end is up by about a basis point."

Meanwhile, in the primary market, the Maryland Transportation Authority priced Thursday $549.385 million in series 2009 transportation facilities project revenue bonds, said a pricing sheet.

The sale included $98.87 million in series 2009A tax-exempt bonds and $450.515 million in series 2009B Build America Bonds.

The bonds (Aa3/AA-/AA-) were sold through lead managers Goldman, Sachs & Co. and Merrill Lynch & Co.

The 2009A bonds are due 2016 to 2023 with coupons from 3% to 5%. The 2009B bonds are due 2029 and 2043 with 5.788% and 5.888% coupons, respectively. The 2009B bonds were priced at par.

Proceeds will be used to fund a variety of transportation improvement projects.

Oglethorpe Power sells $101 million

Elsewhere in primary action, the Oglethorpe Power Corp. of Tucker, Ga., sold $101.115 million in series 2009 variable-rate tax-exempt pollution control revenue bonds, said a form 8-K filed Thursday with the Securities and Exchange Commission.

The bonds are due 2036. The rate resets weekly, and the initial rate is 0.996%, priced at par.

The sale included $7.485 million in series 2009A bonds and $93.63 million in series 2009B bonds.

J.P. Morgan Securities Inc. was the senior manager.

Proceeds from the sale will be used to finance or refinance sewage or solid waste disposal facilities at two electric generating facilities.

MultiCare bonds price

Also on Thursday, the Washington Health Care Facilities Authority sold $101.15 million in series 2010A health-care revenue bonds for MultiCare Health System, said a pricing sheet.

The bonds (A1/A+/) were sold through JPMorgan.

The bonds are due 2010 to 2022 with coupons from 3% to 5.25%. The 2010 and 2011 bonds, as well as the 2020 through 2022 bonds, were not reoffered.

Proceeds will be used to refund existing debt issued for MultiCare Health, which is based in Tacoma, Wash.

Brooklyn Arena bonds planned

Looking to the upcoming week's offerings, the Brooklyn Arena Local Development Corp. of New York plans to price $500 million in series 2009 pilot revenue bonds on Tuesday, said a sales calendar.

The bonds (Baa3/BBB/) will be sold through senior manager Goldman Sachs.

Proceeds will be used to fund the Barclays Center project.

Also coming up on Tuesday, the State of Connecticut plans to sell $450 million in series 2009B taxable general obligation bonds, said a sales calendar.

The bonds will be sold through Morgan Stanley & Co. Inc.

The bonds are due 2020 to 2029.

Proceeds will be used to fund capital needs.

Cuyahoga bonds to price

Moving out to the Midwest, Cuyahoga County in Ohio plans to bring to market $164.78 million in various-purpose G.O. bonds, said a preliminary official statement. The bonds will price on Monday, said a sales calendar.

The sale includes $76.305 million in series 2009A tax-exempt bonds and $88.475 million in Build America Bonds.

The bonds (Aa1/AA+/AA+) will be sold on a negotiated basis with KeyBanc Capital Markets Inc. as the senior manager.

The 2009A bonds are due 2010 to 2024, and the 2009B bonds are due 2011 to 2025 with term bonds due 2029 and 2034.

Proceeds will be used to refund the county's series 2008 notes as well as to fund various improvement projects.

The county seat is Cleveland.

© 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.