Municipals up on the day as last deals of 2014 price; Dasny sells $550.62 million state PITs

By Sheri Kasprzak

New York, Dec. 16 – Municipal prices rose Tuesday, market insiders said, as the bulk of the week’s new issues hit the market. Yields followed rallying Treasuries.

Yields were lower by 2 basis points to 3 bps, a trader said in the afternoon. Municipals underperformed Treasuries, which saw yields drop by 5 bps for the 30-year bond and the 10- and five-year notes.

Meanwhile, the majority of the week’s new issues hit the market, including the largest offering of the week – an upsized deal from the Dormitory Authority of the State of New York.

Dasny brings PITs

Heading up the day’s pricing action, Dasny hit the market with $550,625,000 of series 2014 state personal income tax revenue bonds. The deal was upsized from $518,285,000.

The offering included $467,915,000 of series 2014E tax-exempt bonds, $26.89 million of series 2014F tax-exempt bonds and $55.82 million of series 2014G taxable bonds.

The 2014E bonds are due 2015 to 2035 with term bonds due in 2039 and 2044. The serial coupons range from 3% to 5%. The 2039 bonds have a 4% coupon priced at 104.315 and a 5% coupon priced at 116.022. The 2044 bonds have a 5% coupon priced at 115.085.

The 2014F bonds are due 2016 to 2035 with a term bond due in 2039. The serial coupons range from 2% to 5%. The 2039 bonds have a 5% coupon priced at 114.62.

The 2014G bonds are due 2020 to 2022 with 2.4% to 2.85% coupons, all priced at par.

The bonds (Aa1/AAA/) were sold through BofA Merrill Lynch, RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to finance the construction of capital projects for the state’s Office of Mental Health, as well as to refund existing bonds issued for the Office of Mental Health.

Scottsdale Lincoln prices

Also during the session, the Arizona Health Facilities Authority sold $304,325,000 of series 2014A revenue bonds for the Scottsdale Lincoln Hospital.

The bonds (A2//A) were sold through Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.

The bonds are due 2015 to 2034 with term bonds due in 2039 and 2042, according to a term sheet. The serial coupons range from 3% to 5%. The 2039 bonds have a 2.75% coupon priced at par, a 4% coupon priced at 98.753 and a 5% coupon priced at 111.519. The 2042 bonds have a 5% coupon priced at 110.902.

Proceeds will be used to refinance debt associated with the construction, equipment, acquisition and renovation of a health and emergency services building in Scottsdale.

Chicago water sells debt

Elsewhere, the Metropolitan Water Reclamation District of Greater Chicago priced $295,805,000 of series 2014 general obligation bonds.

The bonds (/AAA/AAA) were sold through senior managers Morgan Stanley & Co. LLC and Loop Capital Markets LLC.

The deal included $100 million of series 2014A green G.O. unlimited tax capital improvement bonds, $50 million of series 2014B green G.O. unlimited tax bonds, $75 million of series 2014C green G.O. limited tax capital improvement bonds and $70,805,000 of series 2014D G.O. limited tax refunding bonds., according to a pricing sheet.

The 2014A bonds are due Dec. 1, 2044 and have a 5% coupon priced at 114.44 to yield 3.28%.

The 2014B bonds are due 2016 to 2034 with term bonds due in 2039 and 2044. The serial coupons range from 2% to 5% with 0.49% to 2.98% yields. The 2039 bonds have a 5% coupon priced at 115.354 to yield 3.18%. The 2044 bonds have a 5% coupon priced at 114.44 to yield 3.28%.

The 2014C bonds are due 2016 to 2028 with 2% to 5% coupons and yields from 0.49% to 2.68%.

The 2014D bonds are due 2016 to 2022 with 2% to 5% coupons and yields from 0.49% to 2.13%.

Proceeds will be used to finance capital improvements to the district’s wastewater and sewage facilities, as well as to refund the district’s series 2006 G.O. capital improvement bonds.

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