Municipals end flat to firmer as new issues come to market; North Carolina power bonds price

By Sheri Kasprzak

New York, July 8 – Municipals ended the day flat to slightly firmer on Wednesday as the largest offering of the week priced, market sources said.

Yields were unchanged to 3 basis points lower, traders said, even as Treasuries continued to climb on the Federal Open Market Committee’s June meeting minutes. The 10-year and five-year Treasury note yields fell by 5 bps as the minutes indicated a possible rate hike for September.

North Carolina utility prices

Heading up the light primary calendar, the North Carolina Municipal Power Agency No. 1 hit the market with $462.29 million of series 2015 Catawba Electric revenue bonds, the week’s largest issuance so far.

The bonds (/A/A) were sold through Morgan Stanley & Co. LLC.

The deal included $305,465,000 of series 2015A refunding bonds, $42,605,000 of series 2015B refunding bonds, $90,175,000 of series 2015C bonds and $24,045,000 of series 2015D taxable refunding bonds.

The 2015A bonds are due 2023 to 2032 with 2% to 5% coupons.

The 2015B bonds are due 2022 to 2024 with 3% to 5% coupons.

The 2015C bonds are due 2029 to 2031 with coupons from 3.5% to 5%.

The 2015D bonds are due Jan. 1, 2022 and have a 3.34% coupon priced at par.

Proceeds will be used to refund the agency’s series 2008A, 2008C, 2009A, 2010A-B and 2012A-B Catawba Electric revenue bonds.

Central Florida BANs price

Also during the day, the Central Florida Expressway Authority offered $193,695,000 of series 2015 senior lien revenue bond anticipation notes.

The notes (A2/A/A) were sold competitively.

The notes are due Jan. 1, 2019 and have a 1.625% coupon priced at 100.298 to yield 1.5%.

Proceeds will be used to provide short-term funding for a portion of the Wekiva Parkway project that extends from Sanford to Mount Dora. The project includes the extension of State Route 429, the addition of State Route 453 and various improvements to state and local roads.

In other Florida offerings, Hillsborough County, Fla., sold $139,215,000 of series 2015 community investment tax refunding revenue bonds.

The bonds (A1/AA/AA) were also sold competitively.

The bonds are due 2016 to 2025 with 3% to 5% coupons and yields from 0.48% to 2.6%.

Proceeds will be used to advance refund the county’s series 2007 community investment tax revenue bonds and to refund outstanding commercial paper.

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