Municipals mostly flat; Museum of Modern Art, Wichita price; New York City, MIT prep deals

By Cristal Cody

Eureka Springs, Ark., July 22 – Municipal bonds capped the week mostly unchanged with 10-year maturities 1 basis point softer on Friday.

Treasuries traded mixed with the benchmark 10-year note yield up 2 bps at 1.55%. The 30-year bond yield dropped 1 bp to close at 2.26%.

In new issuance, the Trust for Cultural Resources of the City of New York sold $278.4 million of revenue bonds for the Museum of Modern Art.

Wichita, Kansas priced $125,255,000 of revenue bonds.

Looking ahead, one of the upcoming week’s main offerings is an $850 million revenue and refunding bond sale from California Health Facilities Financing Authority for Sutter Health, a source said earlier in the week.

The bonds (Aa3/AA-/AA-) are expected to “get good reception,” the source said.

Morgan Stanley & Co. LLC is the bookrunner for the negotiated sale.

Also in the deal pipeline, the City of New York intends to price $1.05 billion of fiscal 2017 series A general obligation bonds.

Massachusetts Institute of Technology plans to offer $500 million of series E taxable bonds.

MoMA bonds price

The Trust for Cultural Resources of the City of New York sold $278.4 million of revenue bonds (Aa2/AA/) due 2023 through 2031, according to an official statement.

The series 2016-One-E bonds for the Museum of Modern Art were sold with 4% coupons in a negotiated offering managed by Goldman Sachs & Co.

Proceeds will be used to refund outstanding bonds and finance a portion of building costs for a museum-owned mixed-use condominium unit and additional new gallery, public, educational and back-office spaces.

Wichita sells $125.2 million

Wichita sold $125,255,000 of revenue bonds (/AA-/) in two tranches, according to an official statement.

The city brought $23.81 million of series 2016A water and sewer utility revenue bonds and $101,445,000 of series 2016B water and sewer utility refunding revenue bonds.

The series 2016A bonds priced with 2% to 5% coupons and 0.65% to 2.96% yields.

The series 2016B bonds were sold with 2% to 5% coupons and yields of 0.65% to 2.95%.

BofA Merrill Lynch was the winning bidder of the competitive sales.

Proceeds will be used to finance a portion of multiple improvements, extensions, enlargements, repairs and reconstruction of various water and sewer utility facilities and to refund certain outstanding series 2009A water and sewer utility revenue bonds.

NYC to price $1.05 billion

New York City intends to price $1.05 billion of fiscal 2017 series A G.O. bonds (Aaa/AAA/), according to a preliminary official statement.

The deal includes $800 million of subseries A-1 tax-exempt bonds, $174,185,000 of subseries A-2 taxable bonds and $75,815,000 of subseries A-3 taxable bonds.

The subseries A-1 bonds have serial maturities from 2018 through 2040 and a planned term bond. The subseries A-2 bonds and A-3 bonds have serial maturities from 2022 through 2028.

Goldman Sachs is the bookrunner for the negotiated offering.

Proceeds will be used for capital purposes.

MIT markets $500 million bonds

Also ahead, Massachusetts Institute of Technology plans to price $500 million of series E taxable bonds (Aaa/AAA/), according to a preliminary official statement.

J.P. Morgan Securities LLC and Barclays will manage the negotiated sale.

Proceeds will be used to support current or future capital projects consistent with the institutions’ capital plan.

© 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.