Municipals end stronger even as Treasuries slip; California prices $1.49 billion G.O. bonds

Sheri Kasprzak

New York, April 19 – Municipals rounded out the session stronger by about a basis point even as Treasuries slipped on stronger oil, market insiders said.

The 10-year triple-A bond yield ended Tuesday at 1.71% and the 30-year yield at 2.69%.

New-issue action got off to a big start, led by the week’s largest deal, a $1,488,795,000 offering of general obligation bonds from California.

The full details of the deal were not immediately available Tuesday evening. Yields on the bonds were talked between 0.60% and 1.68%.

The state offered various purpose G.O. bonds through a competitive offering to finance capital projects, pay outstanding G.O. commercial paper notes and current refund the state’s series 2013A highway safety, traffic reduction, air quality and port security bonds.

Inova Health bonds price

Looking to other pricings Tuesday, the Fairfax County Industrial Development Authority of Virginia sold $143,175,000 of series 2016 health-care revenue bonds for Inova Health.

The bonds (Aa2/AA+/) were sold through Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

The offering included $111.88 million of series 2016A bonds and $31,295,000 of series 2016B bonds.

The 2016A bonds are due 2020 to 2031 with 4% to 5% coupons and yields from 0.97% to 2.30%.

The 2016B bonds are due May 15, 2026, have a 5% coupon and priced at 127.825 to yield 1.93%.

Proceeds will be loaned to Inova to refund the health system’s series 2009A and 2012C revenue bonds.

Charleston school brings debt

In other offerings, the Charleston County School District of South Carolina sold $121.22 million of series 2016 G.O. bond anticipation notes.

The deal included $41.71 million of series 2016A notes and $79.51 million of series 2016B-C notes.

The 2016A notes are due Nov. 4, 2016, have a 4% coupon and priced at 101.765 to yield 0.48%. The 2016B-C notes are due May 2, 2017, have a 5% coupon and priced at 104.392 to yield 0.57%.

The notes (MIG 1) were sold competitively.

Proceeds will be used to pay amounts due to the Charleston Educational Excellence Financing Corp. and to pay principal and interest on the district’s series 2015B-C bond anticipation notes.

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