Municipals end flat as week’s remaining new issues price; Trinity Health brings delayed bonds

By Sheri Kasprzak

New York, Feb. 12 – Municipal yields were flat on the session Thursday as Treasuries closed mixed amid weak economic data, market insiders reported.

Yields were flat even as the 30-year Treasury bond yield rose by 1 basis point and the 10-year note yield fell by 1 bp. The five-year Treasury note yield fell by 3 bps.

During the session, the remainder of the week’s offerings priced, including two delayed deals from the Trinity Health Credit Group.

Trinity sells composite bonds

Trinity Health hit the market Thursday with $896,535,000 of series 2015 composite issue revenue bonds.

The offering included $561,215,000 of series 2015MI hospital revenue and refunding bonds sold through the Michigan Finance Authority, $171.31 million of series 2015ID revenue bonds sold through the Idaho Health Facilities Authority and $164.01 million of series 2015MD revenue bonds sold through Montgomery County, Md., said a pricing sheet

The 2015MI bonds are due 2015 to 2035 with a term bond due in 2038. The serial coupons range from 2% to 5.5% with yields from 0.15% to 3.37%. The 2038 bonds have a 4% coupon that priced at 99.387 to yield 4.04% and a 5% coupon that priced at 109.946 to yield 3.44%.

The 2015ID bonds are due 2015 to 2033 with 2% to 5.5% coupons and 0.15% to 3.27% yields.

The 2015MD bonds are due in 2044 with a 4% coupon that priced at 100.162 to yield 3.98% and a 5% coupon that priced at 113.946 to yield 3.38%.

The bonds were sold through BofA Merrill Lynch and Goldman Sachs & Co.

Proceeds will be used to finance capital improvements to Trinity Health facilities and refund existing bonds.

Trinity taxables price

Also during the session, the credit group offered $350 million of series 2015 taxable bonds.

The bonds (Aa3/AA-/AA) were sold through Goldman Sachs and BofA Merrill Lynch.

The bonds are due Dec. 1, 2045, have a 4.125% coupon and priced at 99.901, according to a pricing sheet.

Proceeds will be used for general corporate purposes.

Thomas Jefferson U sells debt

Also during the day, the Pennsylvania Higher Educational Facilities Authority priced $301,805,000 of series 2015A fixed-rate revenue bonds for Thomas Jefferson University.

The bonds (A1/A/) were sold through senior managers BofA Merrill Lynch and J.P. Morgan Securities LLC.

The bonds are due 2025 to 2035 with term bonds due in 2039, 2045 and 2050, said a term sheet. The serial coupons range from 3% to 5% with yields from 2.76% to 4.02%. The 2039 bonds have a 4% coupon that priced at 99.226 to yield 4.05% and a 5% coupon that priced at 111.06 to yield 3.67%. The 2045 bonds have a 4% coupon that priced at 97.586 to yield 4.14% and a 5% coupon that priced at 110.443 to yield 3.74%. The 2050 bonds have a 5.25% coupon that priced at 111.629 to yield 3.84%.

Proceeds will be used to purchase capital assets, make capital improvements to the university’s facilities and refund the university’s series 2008A-B revenue bonds.

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