Municipals steady as more new issues price; Houston upsizes utility bonds to $952.67 million

By Sheri Kasprzak

New York, Feb. 10 – Municipals remained flat on the session as another round of offerings hit the market, insiders reported.

The yield on the triple-A 10-year note yield remained at 1.71% and the 30-year at 2.73%, traders said.

Meanwhile, Treasuries got a boost on the day after a successful 10-year note auction. The 10-year Treasury note yield fell by 2 basis points to 1.71% and the 30-year by 3 bps to 2.53%, respectively.

Houston brings bonds

Moving to new-issue action, the week’s third-largest deal hit the market as Houston priced $952.67 million of combined utility system revenue and refunding bonds. The deal was upsized from $800 million.

The bonds (Aa2//AA) were sold through senior manager Wells Fargo Securities LLC.

The bonds are due 2016 to 2040 with a term bond due in 2045. The serial coupons range from 3% to 5.25% with 0.34% to 3.30% yields. The 2045 bonds have a 4% coupon and priced at 105.518 to yield 3.38%.

Proceeds will be used to construct, improve or repair the water and sewer system; refund all or a portion of outstanding series B combined utility system commercial paper notes and refund a portion of outstanding combined utility system first-lien revenue bonds.

Missouri power bonds price

Elsewhere in the utility sector, the Missouri Joint Municipal Electric Utility Commission offered $242.55 million of series 2016A power project revenue refunding bonds for the Prairie State Project.

The bonds (A2//A) were sold through Goldman Sachs & Co.

The bonds are due 2032 to 2037 and 2040 to 2041. The coupons range from 4% to 5% with 2.92% to 3.61% yields.

Proceeds will be used to refund the commission’s series 2007A revenue bonds.

Dallas ISD offers debt

Among competitive offerings, the Dallas Independent School District priced $305,785,000 of series 2016A unlimited tax school building bonds.

The bonds (Aaa/AAA/AAA) were sold competitively with BofA Merrill Lynch winning the bid at a 2.763459% true interest cost, said Andre Riley, spokesman for the district.

Riley said Wednesday that the district’s chief financial officer, James Terry, chose to conduct a competitive offering to “get better pricing.”

The bonds are due 2022 to 2036 with 3% to 5% coupons and yields from 1.10% to 3.12%.

Proceeds will be used to construct and equip school buildings in the district.

© 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.