Municipals end flat as Los Angeles brings $1.39 billion; Massachusetts prices $954.46 million

By Sheri Kasprzak

New York, June 24 – Municipals were little moved on the day Wednesday as the week’s largest deals hit the market, insiders said.

Munis mostly ignored Treasuries, which got a boost from skepticism over Greece’s bailout plan after the troubled country’s creditors demanded revisions to its reform proposal.

Over in Treasuries, the 10-year benchmark note yield fell by 4 basis points to close at 2.38% and the 30-year bond yield fell by 4 bps to 3.16%.

Los Angeles notes price

Heading up an active day for the primary market, Los Angeles offered $1,386,045,000 of series 2015 tax and revenue anticipation notes.

The notes (MIG 1/SP-1+/) were sold through Stifel, Nicolaus & Co. Inc. and J.P. Morgan Securities LLC.

The notes are due June 30, 2016, have a 2% coupon and priced at 101.639, said a pricing sheet.

Proceeds will be used to finance capital improvement projects in the coming fiscal year.

Massachusetts sells G.O. bonds

Another major offering came from Massachusetts, which priced $954.46 million of series 2015 general obligation bonds.

The deal included $250 million of series 2015C consolidated G.O. bonds and $704.46 million of series 2015A G.O. refunding bonds.

The 2015C bonds are due 2018 to 2024 and 2031 to 2032 with term bonds due 2040 and 2045. The serial bonds have 5% coupons. The 2040 bonds have a 5% coupon and priced at 112.429. The 2045 bonds have a 4% coupon that priced at par and a 5% coupon that priced at 111.805.

The 2015A bonds are due 2016 to 2017 and 2022 to 2037 with 2% to 5% coupons.

The bonds (Aa1/AA+/AA+) were sold through senior managers BofA Merrill Lynch and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to finance capital projects and refund the state’s series 2005C, 2006D, 2007C and 2008A G.O. bonds.

Health-care bonds sold

Elsewhere during the day, a couple of significant deals were in play from the health-care sector.

The Maryland Health and Higher Educational Facilities Authority priced $263.25 million of series 2015 revenue bonds for the Meritus Medical Center.

The bonds (/BBB/BBB) were sold through BofA Merrill Lynch.

The bonds are due 2016 to 2035 with term bonds due in 2040 and 2045. The serial coupons range from 3.5% to 5%. The 2040 bonds have a 5% coupon and priced at 105.546, the 2045 bond have a 5% coupon and priced at 104.967.

Proceeds will be used to finance capital projects and the acquisition of technology for the medical center.

Also during the day, Miami-Dade County, Fla., priced $206,075,000 of series 2015A public facilities revenue and refunding bonds for Jackson Health System.

The bonds (Aa3/A+/AA-) were sold through Siebert Brandford Shank & Co. LLC.

The bonds are due 2016 to 2036 with coupons from 3% to 5%.

Proceeds will be used to finance additions to health-care facilities and to refund the system’s series 2005 and 2009 revenue 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.