Munis firm in light trading; deal details emerge for Kern County, Orlando Utilities, Frisco

By Cristal Cody

Eureka Springs, Ark., July 1 – Municipals improved in light secondary trading on Friday before the bond markets closed early for the holiday weekend.

Muni bonds tightened about 2 basis points to 3 bps, according to a market source.

The main market news was that Puerto Rico defaulted on bond payments due on Friday.

Treasuries ended the day stronger with the 30-year bond yield down 7 bps to 2.2% as the session closed.

Details emerged on several new bond deals, including the Commonwealth of Massachusetts’ $728,415,000 sale.

Massachusetts prices $728.42 million

Massachusetts sold $728,415,000 of series 2016B general obligation refunding bonds (Aa1/AA+/AA+), according to an official statement.

The bonds due 2017 through 2038 priced with 2% to 5% coupons.

BofA Merrill Lynch was the bookrunner for the negotiated deal.

Proceeds will be used to refund outstanding bonds.

Kern County sells TRANs

Kern County sold $150 million of 2016-17 tax and revenue anticipation notes via a negotiated deal managed by BofA Merrill Lynch, according to a new issue statement.

The county priced $64 million of 2% notes due March 15, 2017 at 100.975 to yield 0.59%.

The $56 million tranche of 3% notes due May 15, 2017 priced at 102.021 to yield 0.64%.

In the final tranche, the county sold $40 million of 3% notes due June 30, 2017 at 102.282 to yield 0.67%.

Proceeds will be used to meet the county’s fiscal year 2016-17 general fund expenditures.

Orlando Utilities brings bonds

Orlando Utilities Commission of Florida priced $142.69 million of series 2016A utility system revenue refunding bonds (Aa2/AA/AA), according to a new issue statement.

The bonds priced with 4% to 5% coupons with serial maturities from Oct. 1, 2017 through Oct. 1, 2023 and Oct. 1, 2028 through Oct. 1, 2033.

Citigroup Global Markets Inc. was the senior manager of the negotiated sale.

Proceeds will be used to refund the commission’s series 2006 refunding bonds and advance refund the series 2009B refunding bonds.

Colorado Health prints

The Colorado Health Facilities Authority sold $173.25 million of hospital revenue bonds (Aa2/AA/AA) for the Adventist Health System/Sunbelt Obligated Group, according to a new issue statement.

The series 2016C bonds included two tranches.

The authority priced $86.5 million of 5% initial interest rate term bonds due Nov. 15, 2036 at 122.706 to yield 1.66%. The price and yield are scheduled to a mandatory tender date on Nov. 15, 2023.

The authority sold $86.75 million of 5% initial interest rate term bonds due Nov. 15, 2036 at 127.236 to yield 2.04%. The bonds have a scheduled mandatory tender date of Nov. 15, 2026.

The negotiated deal was managed by BofA Merrill Lynch, Ziegler & Co. and Wells Fargo Securities LLC.

Proceeds will be used together with other money for the acquisition, construction and equipping of certain facilities of the borrowers and for capital improvements and to refund the refunded series 2006C bonds.

Frisco sells G.O. bonds

The City of Frisco, Texas sold $120,615,000 of series 2016 general obligation refunding and improvement bonds (Aa1/AA+/), according to a new issue statement.

The bonds priced with 3% to 5% coupons in the serial maturities from 2017 through 2036.

RBC Capital Markets, LLC was the bookrunner for the negotiated sale.

Proceeds will be used to refund certain outstanding obligations of the city; construct and equip facilities for a community cultural arts and science center; construct, improve and equip public safety facilities, including fire department facilities, parking for police headquarters, a public safety training facility, acquisition of fire trucks and equipment, acquisition of land and acquisition and installation of warning sirens; construct and improve street and roads, bridge and intersections; construct, improve and equip parks, trails and recreational facilities and construct and equip a maintenance and administration building for the parks and recreation department.

Northampton Authority prices bonds

Northampton County General Purpose Authority of Pennsylvania sold $217,845,000 of hospital revenue bonds (A3/A-/) for St. Luke’s University Health Network project, according to a new issue statement.

The bonds priced with 4% to 5% coupons in the serial maturities due Aug. 15, 2019 through Aug. 15, 2036 and terms due Aug. 15, 2040 and Aug. 15, 2046.

BofA Merrill Lynch managed the negotiated deal.

Proceeds will be used to provide a portion of funds to advance refund the authority’s outstanding series 2008A St. Luke’s hospital revenue bonds and fund or reimburse the borrowers of various capital projects.

Ohio Water raises $150 million

Ohio Water Development Authority sold $150 million of water development revenue bonds (Aaa/AAA/), fresh water series 2016B, according to a new issue statement.

The authority priced the bonds with 5% coupons across all serial maturities from 2023 through 2037 and terms due 2030 through 2036.

Jefferies LLC was the senior manager of the negotiated transaction.

Proceeds will be used to make loans to local government agencies in Ohio as part of the authority’s fresh water program.

Wayne State University Board prices

The Board of Governors of Wayne State University priced $101.26 million of general revenue refunding bonds (Aa3/A+/), according to a new issue statement.

The deal included $89,975,000 of series 2016A tax-exempt bonds and $11,285,000 of series 2016B taxable bonds.

BofA Merrill Lynch was the bookrunner for the negotiated transaction.

Proceeds will be used to redeem some of the board’s outstanding series 2007A general revenue bonds, series 2008 general revenue refunding bonds and series 2009A general revenue refunding bonds.

Imperial Irrigation places $191.5 million

Imperial Irrigation District of California sold $191,535,000 of electric system refunding revenue bonds (/AA-/), according to a new issue statement.

The deal included $31,645,000 of series 2016A federal taxable bonds, $48.38 million of series 2016B-1 commercial paper refunding tax-exempt bonds and $111.51 million of series 2016B-2 2011 refunding tax-exempt bonds.

Citigroup Global Markets Inc. arranged the negotiated sale.

Proceeds will be used to advance refund all of the outstanding series 2008A electric system refunding revenue bonds, certain revenue commercial paper warrants and a portion of the outstanding series 2011A, 2011B and 2011C electric system refunding revenue bonds.

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