Municipals remain off a touch; Rutgers brings $829.65 million; NYC Transitional bonds price

By Sheri Kasprzak

New York, June 13 - Municipal yields were still a touch off on Thursday, market insiders said, but in light of the recent free fall, the slight losses were welcomed.

Treasuries were improved, a factor that kept municipals from dropping substantially, said a trader during the session.

"It's basically a bandage," the trader said.

"The bleeding is stopping a bit. We're still cheaper, but it's not nearly as bad as it was [earlier]."

Secondary pressure was still evident, market sources said, and some primary offerings were forced to downsize because investors were a little skittish due to market conditions.

Rutgers sells debt

Rutgers University of New Jersey was among the offerings that were downsized. The university was set to price $877,005,000 but instead priced $829.65 million of series 2013 general obligation bonds Thursday. Pricing levels were bumped a bit at final pricing, said a market insider.

The deal included $343,195,000 of series 2013J tax-exempt G.O. refunding bonds, $133.82 million of series 2013K taxable G.O. refunding bonds and $352,635,000 of series 2013L tax-exempt G.O. bonds.

The 2013J bonds are due 2014 to 2033 with a term bond due in 2036. The serial bonds have 1% to 5% coupons. The 2036 bonds have a split maturity with a 4.25% coupon priced at 98.556 and a 5% coupon priced at 107.217.

The 2013K bonds are due 2014 to 2023 with term bonds due in 2028 and 2033. The serial coupons range from 0.40% to 3.378% and all priced at par. The 2028 bonds have a 3.928% coupon and priced at par, and the 2033 bonds have a 4.712% coupon and priced at par.

The 2013L bonds are due 2014 to 2033 with term bonds due in 2038 and 2043. The serial coupons range from 1% to 5%. The 2038 bonds have a 5% coupon and priced at 106.883, and the 2043 bonds have a 5% coupon and priced at 106.384.

The bonds (Aa3/AA-/AA-) were sold through Morgan Stanley & Co. LLC.

Proceeds will be used to refund some of the university's certificates of participation, lease revenue bonds, revenue refunding bonds, G.O. bonds and commercial paper.

New York TFA brings bonds

Elsewhere, the New York City Transitional Finance Authority, the other major issuer for the week, priced $800 million of series 2013I future tax secured bonds, said a pricing sheet.

The bonds were sold through Loop Capital Markets LLC.

The bonds are due 2015 to 2034 with term bonds due in 2038, 2042 and 2043. The serial coupons range from 1.75% to 5% with 0.35% to 3.90% yields. The 2038 bonds have a 5% coupon and priced at 108.249 to yield 3.98%. The 2042 bonds have a 5% coupon and priced at 107.404 to yield 4.08%. The 2043 bonds have a 4% coupon and priced at 97 to yield 4.176%.

Proceeds will be used to finance general city capital expenditures.

Ascension sells revenue bonds

In other deal that was downsized, the Wisconsin Health and Educational Facilities Authority offered up $521,865,000 of series 2013 revenue bonds for the Ascension Health Alliance Senior Credit Group, said a pricing sheet. The deal was cut from $600 million.

The deal included $100 million of series 2013A bonds and $421,865,000 of series 2013B bonds.

The 2013A bonds are due 2013 to 2028 with a term bond due in 2043. The serial coupons range from 2% to 5% with 0.15% to 3.58% yields. The 2043 bonds have a split maturity with a 4.5% coupon priced at 97.966 to yield 4.625% and a 5% coupon priced at 105.648 to yield 4.32%.

The 2013B bonds are due in 2043 and have a 4% coupon priced at 110.16 to yield 1.76%, a 4% coupon priced at 110.633 to yield 2.09%, a 5% coupon priced at 116.417 to yield 2.42%, a 5% coupon priced at 115.895 to yield 2.76% and a 0.14% coupon priced at par.

The bonds (Aa2/AA+/AA+) were sold through Morgan Stanley.

Proceeds will be used to refinance debt for Marian Health System, Via Christi Health, Ministry Health Care and St. John Health Care and their affiliates.

© 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.