Municipals fall with Treasuries as new deals hit market; New York Environmental prices bonds

By Sheri Kasprzak

New York, June 23 – Municipals again fell along with Treasuries, market sources said, as the first offerings of the week priced.

Yields on top-rated munis rose 1 to 3 basis points as optimism over Greece’s debt situation sent Treasury yields up 3 to 5 bps.

Market sources said trading volume picked up slightly from Monday’s $6.6 billion level, but action in the secondary remained relatively light.

“We’re certainly following Treasuries to a degree, but we’re also seeing a bit of a backlog on the recent supply,” said a trader in the afternoon.

“That’s putting pressure on yields in spots.”

New York water bonds price

Good-sized deals from both the east and west coasts hit the market.

Heading up those offerings, the New York State Environmental Facilities Corp. offered $216,865,000 of series 2015A clean and drinking water revolving funds revenue bonds.

The bonds (Aaa/AAA/AA+) were sold through Siebert Brandford Shank & Co. LLC and BofA Merrill Lynch.

The bonds are due 2016 to 2037 with term bonds due in 2040 and 2045, according to a term sheet. The serial coupons range from 2% to 5%. The 2040 bonds have a 5% coupon priced at 113.412 and the 2045 bonds have a 5% coupon priced at 112.871.

Proceeds will finance clean and drinking water projects and refund existing debt.

Adventist brings debt

Moving to the health care sector, the California Statewide Communities Development Authority brought $187.5 million of series 2015A revenue bonds for the Adventist Health Systems West.

The bonds (/A/A) were sold through Ziegler Capital Inc. and Wells Fargo Securities LLC.

The bonds are due 2016 to 2035 with term bonds due in 2044 and 2045, said a pricing sheet. The serial coupons range from 2% to 5%. The 2044 bonds have a 4.375% coupon priced at 97.992 and the 2045 bonds have a 5% coupon priced at 107.888.

Proceeds will be used to finance a loan to the health system for the renovation, improvement, construction and acquisition of health facilities projects, as well as to refund existing health system debt.

Seattle sells bonds

Over in the utility sector, the City of Seattle, Wash., priced $164.28 million of series 2015A municipal light and power revenue bonds (Aa2/AA/) competitively.

The bonds are due 2016 to 2040 with a term bond due in 2045. The serial coupons range from 4% to 5%. The 2045 bonds have a 4% coupon priced at par.

Proceeds will be used to finance capital improvements to the city’s light system.

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