Municipal bonds close mixed as Treasuries take a hit; Texas A&M offers $289 million bonds

By Sheri Kasprzak

New York, April 2 – Municipals were slightly mixed on the session Thursday as the market prepared for the early close on Good Friday, traders said.

Yields on longer maturities were a bit higher, by about 1 to 2 basis points, said one trader in the early afternoon. Shorter maturities were flat to somewhat firmer on the day. Meanwhile, Treasuries took a hit after a stronger-than-expected weekly jobless claims report.

Looking to the week ahead, new-issue action is expected to be a bit more subdued following the Passover and Easter holidays.

The calendar will be led by an $871,265,000 offering from the North Texas Tollway Authority, which plans to offer the bonds (A3/BBB+/) through senior managers J.P. Morgan Securities LLC and Loop Capital Markets LLC.

The authority will refund its series 2008F system second-tier revenue refunding bonds with the proceeds.

Texas A&M sells bonds

Moving to Thursday’s lighter primary action, Texas A&M University came to market with $289 million of series 2015 permanent university fund bonds.

The deal included $143,555,000 of series 2015A tax-exempt bonds and $145,445,000 of series 2015B taxable bonds, according to a term sheet.

The 2015A bonds are due 2015 to 2036 with 4% to 5.75% coupons and 0.12% to 3.22% yields.

The 2015B bonds are due 2015 to 2030 with term bonds due in 2034 and 2036. The serial coupons range from 1% to 3.29%, and the yields range from 0.12% to 3.29%. The 2034 bonds have a 3.56% coupon and priced at par, and the 2036 bonds have a 3.6% coupon and priced at par.

The bonds (//AAA) were sold competitively, but the winning bidder was not immediately available by press time Thursday.

Proceeds will be used to finance capital projects and refund all or a portion of the university’s series 2006 permanent university fund bonds.

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