Municipal yields up as Treasuries sink; New York City Transitional prices $784.97 million debt

By Sheri Kasprzak

New York, Feb. 26 – Municipal yields rose on the session Thursday after Treasuries took a dive on improved core Consumer Price Index data, market insiders said.

Muni yields were higher by 1 to 2 basis points after the 30-year and 10-year Treasury yields rose by 7 bps, a trader said in the afternoon.

Thursday’s drop comes after days of improvement on Federal Reserve chairwoman Janet Yellen’s Congressional testimony.

New York City TFA sells bonds

Leading Thursday’s heavy new-issue calendar, the New York City Transitional Finance Authority came to market with $784.97 million of series 2015C future tax secured bonds.

The bonds were sold through Wells Fargo Securities LLC.

The offering included $737,125,000 of series 2015C bonds and $47,845,000 of series 2015D bonds, said a pricing sheet.

The series 2015C bonds are due 2016 to 2031 with 2.375% to 5% coupons.

The 2015D bonds are due 2015 to 2027 with 2% to 5% coupons.

Proceeds will be used to finance capital projects and refund existing debt.

New Orleans airport deal prices

In other primary action, the New Orleans Aviation Board priced $565.34 million of series 2015 general airport revenue bonds for the Louis Armstrong International Airport. The offering size was cut from $590 million.

The deal included $54.55 million of series 2015A non-AMT North Terminal project bonds and $510.79 million of series 2015B AMT North Terminal project bonds, according to a term sheet.

The 2015A bonds are due 2024 to 2035 with term bonds due in 2040 and 2045. The serial bonds have 5% coupons. The 2040 bonds have a 5% coupon and priced at 112.662, and the 2045 bonds have a 5% coupon and priced at 112.222.

The 2015B bonds are due 2024 to 2035 with term bonds due in 2040 and 2045. The serial coupons range from 4% to 5%. The 2040 bonds have a 5% coupon and priced at 110.135, and the 2045 bonds have a 5% coupon and priced at 109.706.

The bonds (A3/A-/A-) were offered through senior manager Citigroup Global Markets Inc.

Proceeds will be used to construct a new North Terminal and related improvements, including aircraft aprons, a parking garage, central utility plant and roadway and ground transportations systems.

Scago brings bonds

Also during the day, the Scago Educational Facilities Corp. for Pickens School District of South Carolina sold $262,855,000 of series 2015 installment purchase refunding revenue bonds.

The bonds (A1/A/) were sold through senior manager BofA Merrill Lynch.

The bonds are due 2015 to 2031 with 3.25% to 5% coupons and 0.32% to 3.65% yields.

Proceeds will be used to refund district’s series 2006 revenue bonds, which were issued to acquire real property and construct, equip and improve new and existing school facilities.

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