Municipals weaken despite Treasuries gain; Energy Northwest hits market with $890.17 million

By Sheri Kasprzak

New York, April 23 – Municipals were slightly softer Thursday despite a gain for Treasuries with triple-A rated muni yields up by 1 basis point in spots, said a trader in the late afternoon.

The last of the week’s sizable calendar hit the market, led by an $890.17 million sale from Energy Northwest of Washington state.

Deal in six tranches

The utility sold $890.17 million of series 2015 electric revenue and refunding bonds in six tranches.

The deal included $321,505,000 of series 2015A Columbia Generating Station electric revenue and refunding bonds, $329,315,000 of series 2015B Columbia Generating Station electric revenue and refunding bonds, $114.23 million of series 2015A Project 1 electric revenue refunding bonds, $12.44 million of series 2015B taxable Project 1 electric revenue refunding bonds, $79.12 million of series 2015A Project 3 electric revenue refunding bonds and $33.56 million of series 2015B Project 3 taxable electric revenue refunding bonds.

The 2015A Columbia bonds are due 2021 to 2035 with a term bond due in 2038. The serial coupons range from 4% to 5%. The 2038 bonds have a 4% coupon that priced at 103.104 and a 5% coupon that priced at 115.347.

The 2015B Columbia bonds are due 2016 to 2020 with term bonds due in 2024 and 2038. The serial coupons range from 0.55% to 2.117% and all priced at par. The 2024 bonds have a 2.814% coupon, and the 2038 bonds have a 2.814% coupon. Both priced at par.

The 2015A Project 1 bonds are due 2027 to 2028 with 5% coupons.

The 2015B Project 1 bonds are due 2016 to 2017 with 0.60% to 0.982% coupons. Both priced at par.

The 2015A Project 3 bonds are due 2017 to 2018 and 2025 to 2026 with 3% to 5% coupons.

The 2015B Project 3 bonds are due 2016 to 2018 with 0.60% to 1.375% coupons, all of which priced at par.

The bonds (Aa1/AA-/AA) were sold through J.P. Morgan Securities LLC.

Proceeds will be used to finance electric capital projects and to refund revenue bonds.

Connecticut deal prices

Elsewhere during the day, Connecticut offered up $250 million of series 2015A green state revolving fund revenue bonds.

The bonds (Aaa/AAA/AAA) were sold through senior manager Goldman Sachs & Co. with BofA Merrill Lynch, Janney Montgomery Scott LLC, Morgan Stanley & Co. LLC and Ramirez & Co. Inc. as the co-senior managers.

The bonds are due 2016 to 2035 with 2% to 5% coupons and 0.17% to 3.45% yields.

Proceeds will be used to provide loans for wastewater and drinking water pollution control capital projects and to reimburse the state for previous loans.

The state hit the market in December with $60 million of green G.O. bonds due 2028 to 2031 with 2.89% to 3.39% yields.

Puerto Rico shutdown looms

In other muni news, the president and chairman of the Puerto Rico Government Development Bank penned a letter this week warning that a government shutdown might occur in the next three months due to a lack of funds.

The commonwealth had been slated to come to market with $2.9 billion of bonds secured by oil tax collections, but those plans have been stalled by failed talks on a tax reform package. The proceeds from this deal would have added much-needed liquidity to the commonwealth’s balance sheet.

© 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.