Municipals remain flat as large slate prices; Massachusetts Bay upsizes $357.39 million bonds

By Sheri Kasprzak

New York, Oct. 1 – Municipals started the month of October on a relatively subdued note, even as a substantial slate of new issues hit the market, traders reported.

Yields on top-rated munis were flat, unmoved by a slightly better Treasuries market.

Treasuries got a boost Thursday as jobless claims jumped more than expected, closing the week of Sept. 26 up 10,000 at 277,000. Economists had expected claims to reach 272,000.

The news sent the 30-year Treasury bond yield down 2 bps and the 10-year yield down 1 bp.

Meanwhile, the market is expecting a huge flood of supply next week with $7.8 billion already scheduled to price.

Massachusetts Bay brings bonds

Among the heavy pricing action, the Massachusetts Bay Transportation Authority sold $357.39 million of series 2015 senior sales tax bonds, upsized from $279,775,000.

The deal included $177.84 million of series 2015A bonds and $179.55 million of series 2015B bonds.

The 2015A bonds are due 2022 to 2035 with term bonds due in 2040 and 2045. The serial coupons range from 2% to 5%. The 2040 bonds have a 5% coupon and priced at 115.192, and the 2045 bonds have a 4% coupon that priced at 103.167 and a 5% coupon that priced at 114.562.

The 2015B bonds are due 2019 and 2024 to 2033 with a term bond due in 2035. The serial coupons range from 4% to 5%. The 2035 bonds have a 4% coupon and priced at 105.178.

The bonds (Aa2/AA+/) were sold through Ramirez & Co. Inc.

Proceeds will be used to refund existing debt.

Contra Costa authority prices

In other pricing news, the Contra Costa Transportation Authority of California offered $166.64 million of series 2015A limited tax sales tax revenue bonds.

The bonds (/AA+/AAA) were sold through Citigroup Global Markets Inc., Wells Fargo Securities LLC and Alamo Capital Inc.

The bonds are due 2017 to 2034 with 2% to 5% coupons and 0.45% to 2.89% yields.

Proceeds will be used to finance transportation improvements and to refund the authority’s series 2012B revenue bonds.

© 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.