Muni yields improve on solid Treasuries, plummeting stocks; Texas A&M brings $239.47 million

By Sheri Kasprzak

New York, May 6 - Municipal yields were seen lower by 2 to 3 basis points as Treasuries continued to surge. The muni market was also helped by a sudden dive in the stock market. The Dow Jones Industrial Average dove by more than 1,000 points during the session before making a comeback.

"Yields are lower, but I think a lot of people are really taking a step back," said one trader.

"Everyone is waiting to see what happens with equities and Treasuries, so a lot of investors are kind of taking a cautious approach. I think it will even out a little tomorrow. Everyone's eyeing stocks right now, though."

In primary, Texas A&M University sold $239.47 million in series 2010 revenue financing system bonds on Thursday, said a sellside source.

The bonds (Aa1/AA+/AA+) were sold on a negotiated basis with Barclays Capital Inc. as the senior manager.

The deal included $93.36 million in series 2010A bonds and $146.11 million in series 2010B bonds.

The 2010A bonds are due 2012 to 2029 with yields from 0.8% to 4.35%. The 2010B bonds are due 2011 to 2039 with yields from 0.8% to 4.27%.

Proceeds will be used to fund capital projects.

The university is based in College Station, Texas.

Sisters of Charity bonds price

In other pricing news Thursday, the Sisters of Charity of Leavenworth Health System brought to market $1.025 billion in revenue and revenue refunding bonds through the Colorado Health Facilities Authority, the Kansas Development Finance Authority and the Montana Facility Finance Authority. The pricing terms were not immediately available.

The sale included $327 million in series 2010A revenue bonds through Colorado Health, $277.525 million in series 2010B revenue bonds through Colorado Health, $202.8 million in series 2010A revenue bonds through Kansas Development, $101.8 million in series 2010A revenue bonds through Montana Facility Finance and $116.1 million in series 2010B refunding bonds through Montana Facility Finance.

J.P. Morgan Securities Inc. was the senior manager.

Proceeds will fund capital improvements and refund outstanding bonds.

U of Chicago deal ahead

Looking out on the horizon, the University of Chicago is set to sell $300 million in series 2010 taxable fixed-rate bonds, said a preliminary official statement.

The bonds (Aa1//AA+) will be sold on a negotiated basis with Bank of America Merrill Lynch as the senior manager. The co-managers are Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC.

The bonds are due 2022 to 2024 and 2026 with a term bond due 2030.

Proceeds will be used to finance, refinance or reimburse the university for various capital expenditures.

Glendale sale planned

Also coming up, the Industrial Development Authority of the City of Glendale in Arizona is expected to price $157.21 million in series 2010 revenue bonds for Midwestern University, said a preliminary official statement.

The bonds (/A-/A) will be sold through senior manager RBC Capital Markets Corp.

The bonds are due 2011 to 2030 with term bonds due 2035 and 2040.

Proceeds will be used to construct and equip educational facilities at the university's Downers Grove, Ill., campus.

The IDA provides financing for educational institutions and other qualified organizations.

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