Municipals improve along with Treasuries; Washington Suburban Sanitary brings $390 million

By Sheri Kasprzak

New York, Oct. 14 – Municipals ended the day on a stronger note, with yields on some top-rated munis lower by 3 basis points, said a trader in the afternoon.

Munis responded to improved Treasuries, which saw yields fall by as much as 7 bps after the Producer Price Index reportedly fell 0.5% for September.

Sanitary district bonds price

Heading up the day’s primary action, the Washington Suburban Sanitary District of Maryland hit the market Wednesday with $390 million of series 2015 consolidated public improvement bonds.

The bonds (Aaa/AAA/AAA) were sold competitively.

The bonds are due 2016 to 2045 with 0.18% to 3.54% yields. The coupons were not immediately available Wednesday.

Proceeds will be used to fund construction or reconstruction of water supply facilities, water supply lines, transmission mains, sewage disposal facilities and sewer collection mains.

Chicago offers bonds

Among the other significant issuers in the market Wednesday, the City of Chicago priced $106,795,000 of series 2015 second-lien wastewater transmission revenue bonds.

The bonds (/A/AA) were sold through senior manager Ramirez & Co.

Ahead of the offering, Standard & Poor’s upgraded the issuer’s wastewater debt to A from A-.

The bonds are due 2018 to 2027 with term bonds due in 2030, 2035 and 2039. The serial coupons range from 2.591% to 5.18% and all priced at par. The 2030 bonds have a 5.48% coupon, the 2035 bonds have a 6.042% coupon, and the 2039 bonds have a 5.842% coupon and all priced at par.

Proceeds will be used to finance the improvement and expansion of the city’s wastewater system.

Hawaii G.O. bonds set

Thursday will feature a $747 million general obligation offering from the State of Hawaii.

The bonds (Aa2/AA/AA) will be offered through BofA Merrill Lynch.

The deal includes green bonds, and the offering will open to institutions after a retail order period is conducted Wednesday.

Proceeds will finance capital projects.

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