Munis flat in ‘lackluster’ session; Ohio University sells 100-year bonds; Arkansas prices

By Cristal Cody

Tupelo, Miss., Nov. 10 – Municipal bonds traded mostly unchanged in thin, quiet trading on Monday, market sources said.

“Pretty lackluster session,” a trader said. “There was not a lot of activity at all today. Although Treasuries are off significantly, it was just not enough participants with the holiday tomorrow.”

The bond markets will be closed on Tuesday for the Veterans Day holiday.

Treasuries softened under selling pressure that sent yields up 5 basis points. The 10-year benchmark Treasury note yield climbed to 2.36%, while the 30-year bond yield jumped to 3.09%.

Muni primary issuance this week is forecast at about $6.1 billion, according to a market source.

California is leading the deal action with a $1,204,325,000 offering of various purpose general obligation bonds (Aa3/A/A), according to a preliminary official statement and market sources.

The deal includes $270 million of federally taxable G.O. bonds, $304,325,000 of tax-exempt G.O. refunding bonds and $630 million of tax-exempt G.O. bonds.

The bonds will price competitively on Thursday.

Public Resources Advisory Group is the financial adviser.

Proceeds will be used to fund projects and pay some of the state’s outstanding taxable G.O. commercial paper notes.

DART to price $402.31 million

Dallas Area Rapid Transit plans to price $402,305,000 of senior lien sales tax revenue refunding bonds, according to a preliminary official statement.

The series 2014A bonds (Aa2/AA+/) have serial maturities from 2015 through 2036.

J.P. Morgan Securities LLC is the bookrunner for the negotiated offering.

Proceeds will be used to refund a portion of DART’s series 2007 revenue refunding bonds and series 2008 revenue bonds.

Ohio University prices at par

In new issuance, Ohio University brought a $250 million offering of 5.59% 100-year general receipts bonds at par, according to an official statement and pricing sheet.

The series 2014 bonds (Aa3/A+/) are due Dec 1, 2114.

Barclays was the bookrunner for the negotiated offering.

Proceeds from the offering will be used to help finance projects that include construction and upgrades to university facilities.

Arkansas sells $206.53 million

In other pricing activity, Arkansas sold $206.53 million of federal highway grant anticipation and tax G.O. revenue bonds, according to a pricing sheet and official statement.

The series 2014 bonds (Aa1/AA/) priced with 5% coupons and yields from 0.11% to 2.45% across the 2015 through 2026 maturities.

Citigroup Global Markets Inc. was the winning bidder of the competitive offering.

Proceeds from the deal will be deposited into a program fund.

© 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.