Supply light; municipals edge lower on strong selling; Suffolk, Va., bonds trade up 2 points

By Cristal Cody

Tupelo, Miss., Aug. 9 - Municipals traded about 1 point weaker while secondary activity remains stronger on the lack of new offerings, a bond source said on Thursday.

"We got the refunding behind us. There's just not a lot of supply," a bond source said. "I'm selling a lot of bonds today. No supply, but there's still money chasing it."

The Treasury Department sold $72 billion of debt over the week in the quarterly refunding.

Some municipal bonds did trade stronger on the day, a trader said.

A Suffolk, Va., offering of $63.5 million of series 2012 general obligation and refunding bonds (Aa2//AA+) sold on Wednesday traded better in Thursday's session, the trader said.

"That's up 2 points in the secondary market," the trader said. "It was priced cheap to begin with."

For example, the offering's 3% maturity due 2032 came at 96 5/8 and on Thursday was offered at 981/2, the trader said.

Ohio school deal

In primary activity coming up, a new offering of $139.29 million of G.O. bonds is expected from South-Western City School District, Franklin County and Pickaway County, Ohio, according to a preliminary official statement.

The series 2012 school facilities construction and improvement bonds (Aa2/AA/) have serial maturities from 2013 through 2032 and a term bond due 2037.

Fifth Third Securities Inc. and Stifel Nicolaus & Co. Inc. will manage the negotiated sale.

Proceeds will be used to construct, furnish and equip school facilities and for adding additional school facilities, curriculum implementation district-wide and to acquire land and interests in land.

Mount Sinai Medical to price

The City of Miami Beach Health Facilities Authority plans to sell $133,525,000 of series 2012 hospital revenue refunding bonds for Mount Sinai Medical Center of Florida, according to a preliminary official statement on Thursday.

The bonds (Baa2/BBB/) will price through a negotiated sale managed by Raymond James/Morgan Keegan.

Proceeds will be used to refund and redeem series 1998 and series 2001A bonds.

JEA plans $84.71 million

In another deal in Florida on the horizon, JEA plans to sell $84,705,000 of St. John's River Power Park System series 25 issue two refunding revenue bonds, according to a preliminary official statement on Thursday.

The bonds (Aa2//AA-) are due Oct. 1, 2012 through Oct. 1, 2014, Oct. 1, 2016 and Oct. 1, 2021.

RBC Capital Markets Corp. is the senior manager of the negotiated sale. The co-managers are Barclays, Bank of America Merrill Lynch, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., Jefferies & Co., J.P. Morgan Securities LLC, Loop Capital Markets LLC, Morgan Stanley & Co. LLC, Piper Jaffray & Co., Raymond James/Morgan Keegan and Wells Fargo Securities LLC.

Proceeds will be used to refund and defease a portion of series 22 issue two refunding revenue 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.