Munis seen firmer; Pennsylvania brings $900 million G.O. refunding bonds, Build America Bonds

By Sheri Kasprzak

New York, Jan. 13 - Municipal yields were seen slightly better on Wednesday with the largest offerings of the week seen in primary.

"Yields are probably 1 or 2 basis points lower, with the biggest gains on the long end," said one trader reached during the day.

"There's been decent activity out there."

Amid the action, the Birmingham Waterworks Board of Alabama saw its recently priced subordinated bonds moving. The 3.75% 2019 bonds were trading at 3.973%.

In primary action, the Commonwealth of Pennsylvania priced $900 million in series 2010A-B general obligation refunding bonds and Build America Bonds, according to a term sheet.

The bonds were sold competitively with Barclays Capital Inc. as the winning bidder.

The sale included $295.865 million in series 2010A G.O. refunding bonds and $604.135 million in series 2010B Build America Bonds.

The 2010A bonds are due 2011 to 2019 with coupons from 2% to 5%. The 2010B bonds are due 2020 to 2021 with term bonds due 2026 and 2030. Coupons range from 4.45% to 5.45%.

Proceeds will be used to refund existing debt and fund capital expenditures.

Harvard prices $480 million

Also in the Northeast, Harvard University of Cambridge, Mass., brought to market $480 million in series 2010A revenue bonds (Aaa) Wednesday, according to a pricing sheet.

The bonds were sold through Barclays.

The bonds are due 2013 to 2015 and 2021 to 2031 with 3% to 5% coupons. A 5% term bond due 2034 was not reoffered.

Proceeds will be used to refinance previously issued debt and commercial paper.

N.J. Higher Education Student Assistance bonds price

Elsewhere, the Higher Education Student Assistance Authority of the State of New Jersey priced Wednesday $338 million in series 2010-1 student loan revenue bonds, said a pricing sheet.

The bonds (Aa2/AA/) were sold through Merrill Lynch & Co.

The sale included $300 million in series 2010-1A refunding bonds and $38 million in series 2010-1B revenue bonds.

The 2010-1A bonds are due 2011 to 2029 with term bonds due 2032 and 2037. The coupons range from 2.5% to 5.25%. The 2010-1B bonds have split maturities in 2013 with 3% and 5% coupons. The full pricing details were not immediately available.

Proceeds will be used to fund student loans and refund existing debt.

OSU sells $278.1 million

In other pricing news, Ohio State University sold on Wednesday $278.095 million in series 2010A general receipt bonds, said a term sheet.

The bonds (Aa2/AA/) were sold through Morgan Stanley & Co. Inc.

The bonds are due 2011 to 2020 with 3% to 5% coupons. The 2020 bonds were not reoffered.

Proceeds will be used to refund existing debt.

The university is based in Columbus, Ohio.

Swedish Covenant bonds price

Also Wednesday, the Illinois Finance Authority priced $88.935 million of series 2010A revenue refunding bonds for Chicago's Swedish Covenant Hospital in a downsized offering, said a pricing sheet.

The bonds (/A-/BBB+) were sold through Bank of America Merrill Lynch.

The bonds are due 2011 to 2019 with term bonds due 2024, 2029 and 2038. Serial coupons range from 4% to 5.125%. The 2024 bonds have a 5.5% coupon priced at 98.523, the 2029 bonds have a 5.75% coupon priced at 98.271, and the 2038 bonds have a 6% coupon priced at 97.99.

Proceeds will be used to refund debt.

Missouri student loan sale planned

Out on the horizon, the Higher Education Loan Authority of the State of Missouri is expected to bring to market $1.078 billion in series 2010-1 student loan asset-backed Libor floating-rate notes, said a preliminary official statement.

The notes (/AAA/AAA) will be sold through senior managers Bank of America Merrill Lynch and Morgan Stanley.

The maturity dates have not been set.

Proceeds will be used to fund student loans throughout the state.

Also ahead, the Escambia County Health Facilities Authority of Florida is set to sell $147.71 million in series 2010A health care facilities revenue bonds for Baptist Hospital Inc., said a preliminary official statement.

The bonds (Baa1//BBB+) will be sold through lead manager Bank of America Merrill Lynch.

The maturities have not been set.

Proceeds will be used to refund the hospital's series 1998 and 2003 bonds as well as finance the equipment and renovation of Baptist Hospital locations in Pensacola, Fla., and Gulf Breeze, Fla.

© 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.