Munis rally; Marta hits market with $243 million bonds; University of Maryland System prices

By Sheri Kasprzak

New York, Feb. 4 – Municipals rounded out the day stronger with yields on some top-rated bonds lower by as much as 5 basis points, traders reported.

Munis outperformed Treasuries, which got a boost during the session from lackluster economic data, including a jump for jobless claims and a slide for factory orders. The five-year and two-year Treasury note yields fell by 2 bps.

Meanwhile, the new issues that priced Thursday included a substantial offering from Atlanta’s transit authority.

Marta offers bonds

Leading the day’s deals, the Metropolitan Atlanta Rapid Transit Authority of Georgia came to market with $242,985,000 of series 2016B sales tax revenue refunding bonds.

The bonds were sold competitively, but the issuer did not respond to calls requesting the winning bidder.

The bonds are due 2030 to 2037 with 5% coupons and yields from 2.22% to 2.64%.

Proceeds will be used to refund the authority’s series 2007B revenue bonds.

U of Maryland sells bonds

Also during the session, the University of Maryland System priced $201,735,000 of series 2016 auxiliary facility and tuition revenue bonds.

The deal included $140 million of series 2016A bonds and $61,735,000 of series 2016B refunding bonds.

The 2016A bonds are due 2017 to 2036 with 3% to 5% coupons and yields from 0.41% to 3.08%.

The 2016B bonds are due 2017 to 2030 with coupons from 2% to 5% and yields from 0.41% to 2.50%.

The bonds (Aa1/AA+/) were sold competitively. The issuer did not respond to calls Thursday for the winning bidder.

Proceeds will finance capital projects for the university and refund its series 2008A, 2009A and 2011A revenue bonds.

Florida BOE brings deal

Elsewhere, the Florida Board of Education priced $116.72 million of public education capital outlay refunding bonds.

The bonds (Aa1/AAA/AAA) were sold competitively with Wells Fargo Bank, NA winning the bid at a 1.74% true interest cost.

The bonds are due 2017 to 2028 with 3% to 5% coupons and 0.45% to 1.94% yields.

Proceeds will be used to refund a portion of series 2007A public education capital outlay refunding bonds.

“The refunding generated gross debt service savings of $25.2 million [and] present value savings of $22.5 million, or 16.4% of the principal amount of the refunded bonds,” said Ben Watkins, the director of the Florida Division of Bond Finance, in an interview Thursday morning.

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