Municipal yields rise as much as 1 bp as week’s remaining issues price; NYC Transitional prices

By Sheri Kasprzak

New York, April 16 – Municipals were flat to slightly weaker again on Thursday as the bulk of the week’s offerings priced, market insiders said.

Long bonds saw yields rise by about 1 basis point with the remainder of the curve ending mostly flat.

Trading remained brisk, said one trader in the afternoon, as the market absorbed a calendar with more than $10 billion of new issues on it.

Those new offerings Thursday were led by an $850 million deal from the New York City Transitional Finance Authority.

The authority’s series 2015E future tax subordinate bonds were offered in two tranches: $650 million of series 2015E-1 tax-exempt bonds and $200 million of series 2015E-2 taxable bonds.

The 2015E-1 bonds are due 2017 to 2035 with term bonds due in 2041 and 2042. The serial coupons range from 1% to 5%. The 2041 bonds have a 5% coupon and priced at 114.727. The 2042 bonds have a 3.625% coupon that priced at 98.728 and a 5% coupon that priced at 114.636.

The 2015E-2 bonds are due 2020 to 2029 with 2.5% to 3.3% coupons and yields from 1.88% to 3.37%.

The bonds were sold through joint bookrunners Loop Capital Markets LLC, Barclays, BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.

Proceeds will be used for general city capital expenditures.

PANYNJ deal prices

Another major offering came from the Port Authority of New York and New Jersey, which offered up $775 million of series 188-190 consolidated bonds, said a pricing sheet.

The bonds (Aa3/AA-/AA-) were offered through lead manager BofA Merrill Lynch.

The deal included $125 million of series 188 bonds, $490 million of series 189 bonds and $160 million of series 190 bonds.

The 188 bonds are due 2015 to 2035 with 3% to 5% coupons and 0.14% to 3.35% yields.

The 189 bonds are due 2016 to 2035 with term bonds due in 2040 and 2045. The serial coupons range from 2% to 5% with yields from 0.22% to 3.05%. The 2040 bonds have a 5% coupon and priced at 115.793 to yield 3.15%, and the 2045 bonds have a 5% coupon and priced at 115.421 to yield 3.19%.

The 190 bonds are due 2026 to 2038 with 5% coupons and 1.69% to 2.36% yields.

Proceeds will be used to finance capital projects.

© 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.