Yields rise 2 to 4 bps as major deals price; Massachusetts brings $475 million G.O. bonds

By Sheri Kasprzak

New York, Sept. 21 - Municipals yields were largely softer on Wednesday, with yields in the middle of the curve up 2 basis points to 4 bps. Longer bonds were a touch firmer, however.

Investors seemed to be absent from the secondary market, traders said.

After some early firmness, the market trailed off at the end of the day. Five-year yields were seen up nearly 3 bps, and 10-year bonds were up nearly 4 bps. Fifteen-year yields were up more than 3 bps.

Even though the secondary market was quiet, as one trader pointed out, it was anything but quiet on the primary side of the market. A number of competitive offerings came down the pipeline Wednesday, led by the Commonwealth of Massachusetts' $475 million sale of series 2011D consolidated loan general obligation bonds.

The bonds (Aa1) were sold competitively with Bank of America Merrill Lynch winning the bid, said a pricing sheet.

The bonds are due 2012 to 2018 and 2022 to 2028 with 3% to 5% coupons.

Proceeds will be used to finance portions of the commonwealth's capital plan.

Ohio sells school debt

Also during the session, the State of Ohio brought $300 million of series 2011B common schools G.O. bonds to market, said a term sheet.

The bonds (Aa1/AA+/AA+) were sold competitively.

The bonds are due 2012 to 2031 with 2.5% to 5% coupons.

Proceeds will be used to pay for capital facilities at common schools throughout the state.

Metro Washington airport prices

In other offerings, the Metropolitan Washington Airports Authority of the District of Columbia came to the table with $202.705 million of series 2011 airport system refunding revenue bonds, said a pricing sheet.

The offering included $185.39 million of series 2011C AMT refunding bonds and $17.315 million of series 2011D non-AMT refunding bonds.

The 2011C bonds are due 2012 to 2028 with 2% to 5% coupons. The 2011D bonds are due 2012 to 2031 with 2% to 5% coupons.

The bonds (Aa3/AA-/AA-) were sold through senior manager J.P. Morgan Securities LLC.

Proceeds will be used to refund all or a portion of the authority's series 1998B and 2001A-B airport system revenue bonds.

Memphis brings offering

Elsewhere, the Memphis City Center Revenue Finance Corp. of Tennessee sold $196.935 million of series 2011 Pyramid and Pinch District redevelopment project revenue bonds, said a pricing sheet.

The deal included $40.54 million of series 2011A taxable senior revenue bonds, $100.245 million of series 2011B tax-exempt subordinated revenue bonds and $56.15 million of series 2011C taxable subordinated revenue bonds.

The bonds were sold through senior managers Morgan Keegan & Co. Inc. and Citigroup Global Markets Inc.

The 2011A bonds are due 2014 to 2027 with a term bond due in 2030. The serial coupons range from 2.04% to 5.18%, all priced at par. The 2030 bonds have a 5.53% coupon and priced at par.

The 2011B bonds are due in 2025 and 2030. The 2025 bonds have a split maturity with a 4% coupon priced at 98.095 and a 5.25% coupon priced at 112.667. The 2030 bonds have a split maturity with a 4.5% coupon priced at 98.236 and a 5.25% coupon priced at 108.327.

The 2011C bonds are due 2014 to 2021 with 1.89% to 4.18% coupons, all priced at par.

Proceeds will be used to redevelop an area of the city called the Pyramid Arena into retail and commercial space.

Palm Beach schools get funding

The Palm Beach County School District of Florida priced Wednesday $115 million of series 2011 tax anticipation notes, said a pricing sheet.

The notes (MIG 1) were sold competitively. Calls to the issuer for the winning bidder were not returned by press time Wednesday.

The notes are due Jan. 26, 2012, have a 1.5% coupon and priced at 100.448.

According to the district's debt policy, it must conduct short-term offerings on a competitive basis unless a negotiated offering will be more cost effective.

Proceeds will be used to finance operating expenses for the 2011-2012 fiscal year ahead of the collection of ad valorem taxes.

Oklahoma turnpike deal ahead

Looking to upcoming offerings, the Oklahoma Turnpike Authority is expected to price $521.765 million of series 2011A Oklahoma turnpike system refunding second senior revenue bonds, said a preliminary official statement.

The bonds (Aa3/AA-/AA-) will be sold on a negotiated basis with RBC Capital Markets LLC as the senior manager.

The bonds are due 2012 to 2028.

Proceeds will be used to refund the authority's series 2006C, 2006E and 2006F revenue bonds.

L.A. schools to price bonds

Also on the horizon, the Los Angeles Unified School District of California plans to bring $400 million of series 2011A G.O. refunding bonds, said a preliminary official statement.

The bonds will be sold in two tranches, the exact breakdown of which has not been determined.

The senior manager for the offering is Citigroup.

Proceeds will be used to refund the school district's election of 1997 series 2003F G.O. bonds and its election of 2002 series 2003A G.O. bonds.

© 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.