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Municipals improve as new issues price; Ascension Health Alliance brings $1.25 billion bonds
By Sheri Kasprzak
New York, April 27 – Municipals were stronger Wednesday, following in line with but underperforming Treasuries, said market insiders.
The 10-year muni triple-A bond yield fell by 1 basis point to close at 1.65%, and the 30-year yield ended the session 2 bps lower at 2.61%, said a trader during the session.
Meanwhile, Treasuries saw yields fall as much as 7 bps as the Federal Open Market Committee again elected to hold rates steady, even amid chatter of another 2016 rate hike.
Ascension brings $1.25 billion
The week’s largest offering came from the Ascension Health Alliance, which priced $1,246,250,000 of series 2016 revenue bonds.
The deal included $1,019,750,000 of series 2016A bonds through the Wisconsin Health and Educational Facilities Authority, $73,075,000 of series 2016B bonds through the Alabama Special Care Facilities Financing Authority of Birmingham, $87,795,000 of series 2016C bonds through the Alabama Special Care Facilities Financing Authority of Mobile and $65.63 million of series 2016E-1 bonds through the Michigan Finance Authority.
The 2016A bonds are due 2018 to 2036 with term bonds due in 2039 and 2046. The serial coupons range from 3% to 5% with yields from 0.75% to 3.25%. The 2039 bonds have a 4% coupon that priced at 106.453 to yield 3.24%, a 4.5% coupon that priced at 112.519 to yield 3.04% and a 5% coupon that priced at 118.706 to yield 2.84%. The 2046 bonds have a 4% coupon that priced at 105.489 to yield 3.35%.
The 2016B bonds are due Nov. 15, 2046, have a 5% coupon and priced at 117.373 to yield 2.98%.
The 2016C bonds are due Nov. 15, 2046, have a 5% coupon and priced at 117.373 to yield 2.98%.
The 2016E-1 bonds are due Nov. 15, 2046, have a 1.10% coupon and priced at par.
The bonds (Aa2/AA+/AA+) were sold through senior manager Morgan Stanley & Co. LLC.
Proceeds will be used to finance capital improvements to Ascension facilities.
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