Municipals close flat, ignoring Treasury rally; U of Chicago upsizes issue to $412.08 million

By Sheri Kasprzak

New York, Aug. 19 – Despite strength in the Treasuries market Wednesday, municipals were mostly flat to end another busy session, market insiders said.

Yields were mostly unchanged with municipals shrugging at a rally in the Treasuries market. The Federal Open Market Committee’s July meeting minutes revealed there will be no immediate hike for the federal funds rate, a revelation that sent the two-year note yield down 7 basis points and the five-year yield down 10 bps.

U of Chicago upsized

Heading up the day’s primary action, the Illinois Finance Authority hit the market with $412,075,000 of series 2015A revenue bonds for the University of Chicago. The offering was upsized from $400 million.

The bonds (Aa2/AA/AA+) were sold through senior managers Barclays and RBC Capital Markets LLC.

The bonds are due 2025 to 2037 with term bonds due in 2040 and 2046. The serial coupons range from 2.1% to 5%. The 2040 bonds have a 4% coupon that priced at 99.06 and a 5% coupon that priced at 111.188. The 2046 bonds have a 4% coupon that priced at 99.883 and a 5% coupon that priced at 110.391.

Proceeds will be used to finance the construction, acquisition, improvement and repair of university facilities and to advance refund the university’s series 2007 revenue bonds.

Tampa airport bonds price

Another significant offering came from the Hillsborough County Aviation Authority of Florida, which priced $383,395,000 of series 2015 customer facility charge revenue bonds for the Tampa International Airport.

The deal included $89.11 million of series 2015A non-AMT bonds and $294,285,000 of series 2015B taxable bonds.

The 2015A bonds are due Oct. 1, 2044, have a 5% coupon and priced at 108.737.

The 2015B bonds are due 2019 to 2030 with term bonds due in 2035 and 2041. The serial coupons range from 2.587% to 4.751% and all priced at par. The 2035 bonds have a 5.17% coupon, and the 2041 bonds have a 5.25% coupon. Both priced at par.

The bonds (A3/A-/) were sold through Citigroup Global Markets Inc.

Proceeds will be used to finance the construction of an automated people mover connection to the main terminal at Tampa International Airport.

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