Munis improve as week’s remaining new deals price; Indiana brings $297 million stadium bonds

By Sheri Kasprzak

New York, May 7 – Municipals rounded out Thursday on a firmer note after spending most of the week in a downward spiral, traders reported. Yields on long bonds were seen lower by about 4 basis points, said one trader in the afternoon.

Improved Treasuries helped matters as the 30-year bond yield fell by 8 bps, reversing direction after yields on European bonds sent investors back into the market.

Elsewhere, the remainder of the week’s new issues hit the market, led by two stadium deals.

Indiana refunds debt

Heading up the day’s primary activity, the Indiana Finance Authority hit the market with $296,995,000 of series 2015A stadium project lease appropriation refunding bonds.

The bonds (Aa2/AA+/AA+) were sold through Goldman Sachs & Co. and J.P. Morgan Securities LLC.

The bonds are due 2016 and 2018 to 2035 with a term bond due in 2037, said a term sheet. The serial coupons range from 5% to 5.25%. The 2037 bonds have a 5.25% coupon and priced at 113.421.

Proceeds will be used to current refund the authority’s series 2005A-2, 2005A-3 and 2007A-1 stadium project bonds.

Atlanta stadium bonds price

The other stadium deal came from the Atlanta Development Authority, which plans to construct a soccer stadium with the proceeds from its $224,315,000 of series 2015 new downtown stadium project revenue bonds.

The deal included $167.53 million of series 2015A-1 senior-lien bonds (Aa3/A+/), $16.4 million of series 2015A-2 senior-lien bonds (Aa3/A+/) and $40,385,000 of series 2015B second-lien bonds (A1/A/).

The bonds were sold through Citigroup Global Markets Inc.

The 2015A-1 bonds are due 2021 to 2035 with term bonds due in 2040 and 2044. The serial bonds have 5% coupons. The 2040 bonds have a 5.25% coupon and priced at 112.351, and the 2044 bonds have a 5.25% coupon and priced at 111.904.

The 2015A-2 bonds are due 2017 to 2021, have 1.41% to 2.922% coupons and all priced at par.

The 2015B bonds are due 2017 to 2030 with term bonds due in 2035, 2040 and 2044. The serial coupons range from 3% to 5%. The 2035 bonds have a 4% coupon and priced at 98.299, the 2040 bonds have a 4% coupon and priced at 96.76, and the 2044 bonds have a 5% coupon and priced at 107.818.

Presbyterian offers debt

Elsewhere, the New Mexico Hospital Equipment Loan Council hit the market with $237,325,000 of series 2015A hospital system revenue bonds for Presbyterian Healthcare Services.

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

The bonds are due 2016 to 2032 with a term bond due in 2044. The serial bonds have 5% coupons. The 2044 bonds have a 4.125% coupon that priced at 97.588 and a 5% coupon that priced at 109.443.

Proceeds will be used to advance refund the health-care system’s series 2008A revenue bonds.

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