Munis decline with Treasuries as stocks bolstered by retail data; South Carolina offers bonds

By Sheri Kasprzak

New York, Feb. 12 – Municipals ended Friday weaker, slipping but outperforming diving Treasuries, traders said.

Yields on top-rated municipals rose by as much as 5 basis points, even as the 10-year benchmark Treasury note yield jumped by 11 bps.

Meanwhile, retail sales data helped fuel a stock rally with strong January results indicating a better-than-anticipated economic outlook.

The Dow Jones industrial average rose by 313 points to close at 15,925.00, and the Nasdaq climbed 47.25 points to 4,008.50. The S&P 500 ended the day 35 points higher at 1,859.50.

South Carolina prices bonds

Among Friday’s primary action, the State of South Carolina sold $260,315,000 of series 2016 general obligation bonds.

The deal included $19.14 million of series 2016A state institution G.O. bonds for the South Carolina State University, $20,305,000 of series 2016B state institution G.O. refunding bonds for Winthrop University, $8,765,000 of series 2016C state institution G.O. refunding bonds for Midlands Technical College, $30,095,000 of series 2016D state institution G.O. refunding bonds for Medical University of South Carolina, $10,025,000 of series 2016E state institution G.O. refunding bonds for Coastal Carolina University, $65,915,000 of series 2016A state research university G.O. refunding bonds, $44.56 million of series 2016A state economic development G.O. refunding bonds, $31.77 million of series 2016B state economic development G.O. refunding bonds and $29.74 million of series 2016C taxable state economic development G.O. refunding bonds.

Deals has nine tranches

The 2016A South Carolina State University bonds are due 2018 to 2028 with 4% coupons and 0.55% to 1.96% yields.

The 2016B Winthrop University bonds are due 2017 to 2029 with 5% coupons and yields from 0.52% to 2.05%.

The 2016C Midlands Technical College bonds are due 2017 to 2027 with 5% coupons and 0.37% to 1.75% yields.

The 2016D Medical University of South Carolina bonds are due 2017 to 2036 with coupons from 3% to 5% and yields from 0.37% to 3.101%.

The 2016E Coastal Carolina University bonds are due 2017 to 2027 with 5% coupons and yields from 0.37% to 1.75%.

The 2016A state research university bonds are due 2016 to 2024 with 5% coupons and 0.20% to 1.4% yields.

The 2016A economic development bonds are due 2017 to 2030 with 3% to 5% coupons and 0.37% to 2.55% yields.

The 2016B economic development bonds are due 2016 to 2030 with coupons from 3% to 5% and yields from 0.20% to 2.35%.

The 2016C economic development bonds are due 2016 to 2020 with 2.05% to 4.85% coupons and yields from 0.45% to 1.25%.

The bonds (Aaa/AA+/AAA) were sold competitively, but the issuer did not respond to calls for the winning bidder Friday.

Proceeds will be used to refund the state’s series 2003G South Carolina State University G.O. bonds, 2006D South Carolina State University G.O. bonds, series 2005B Winthrop University G.O. bonds, 2006A Winthrop G.O. bonds, 2008B Winthrop G.O. bonds, 2009A Winthrop G.O. bonds, series 1998A Midlands Technical G.O. bonds, series 2002C Midlands G.O. bonds, 2007A Midlands Technical G.O. bonds, series 2005A Medical University of South Carolina G.O. bonds, 2002D Coastal Carolina G.O. bonds, 2006C Coastal Carolina G.O. bonds, series 2005A research university G.O. bonds, series 2005B state university infrastructure bonds, 2009A research university G.O. bonds, 2005C economic development bonds, series 2005F-G economic development bonds, 2006A economic development bonds, 2005A taxable economic development bonds and 2005D-E taxable economic development bonds.

MTA eyes green bonds

Looking to the week ahead, new-issue volume is expected to reach about $5.6 billion despite the Presidents Day holiday on Monday.

Supply will be led by a $500 million offering of transportation revenue green bonds from New York’s Metropolitan Transportation Authority.

The bonds (A1/AA-/A) will price Thursday through Ramirez & Co. Inc.

Proceeds from the deal will be used to retire the authority’s series 2015A bond anticipation notes, which were issued to finance commuter projects.

Also on Thursday, the Los Angeles County Metropolitan Transportation Authority will offer $188.27 million of sales tax revenue refunding bonds (Aa1/AAA/) competitively.

The bonds are due 2016 to 2031, and proceeds will fund the authority’s series 2008 first tier senior sales tax revenue refunding bonds.

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