Municipals end firmer; Children's Healthcare of Atlanta sells $298.5 million in revenue bonds

By Sheri Kasprzak

New York, Nov. 18 - Municipal bonds gained strength on Wednesday across the yield curve. Yields were seen lower by 3 or more basis points, said one trader reached in the afternoon.

"We're seeing good activity," noted the trader.

"Yields are down by 3, maybe even 4, basis points overall."

Coming up Thursday, the California State Public Works Board is scheduled to price $1.09 billion in bonds through Wachovia Bank, NA.

"I think it will probably do OK," said one sellsider asked about the deal.

"It might go a little cheap, but probably not that cheap. They have fairly solid ratings, at least for a California name. That helps."

Meanwhile, in primary action, Children's Healthcare of Atlanta priced $298.5 million in series 2009 revenue bonds, said a sellside source familiar with the deal.

The bonds (Aa2/AA/) were sold through lead managers J.P. Morgan Securities Inc. and SunTrust Robinson Humphrey.

The deal included $247.7 million in series 2009 revenue anticipation certificates sold through the DeKalb Private Hospital Authority and $50.8 million in series 2009 revenue bonds sold through the Development Authority of Fulton County.

The revenue certificates are due 2010 to 2021 with term bonds due 2024, 2029, 2034 and 2039. The yields range from 1.72% to 5.45%.

The revenue bonds are due 2011 to 2021 with term bonds due 2029, 2034 and 2039. Yields range from 1.72% to 5.45%.

Proceeds will be used to refund bonds issued for the health-care system by each authority.

Municipal Gas of Georgia sells

Also on Wednesday, the Municipal Gas Authority of Georgia sold $150 million in gas portfolio III revenue refunding bonds, said a term sheet.

The sale included $75 million in series G bonds and $75 million in series H bonds.

The series G bonds are due May 19, 2010 and have a 2% coupon priced at 100.554. The series H bonds are due Nov. 18, 2010 and have a 2% coupon priced at 100.999.

Wells Fargo Securities Inc. and JPMorgan were the lead managers for the bonds (MIG 1/SP-1+/F1+).

The proceeds will be used to refund existing debt.

Aqua America prices bonds

Aqua America, Inc. sold $75 million in series 2009 tax-exempt first mortgage bonds for subsidiary Aqua Pennsylvania, said a company statement.

The sale was conducted in two tranches: a $13 million tranche and a $62 million tranche.

The $13 million tranche has a 4.75% coupon to yield 4.9%. The $62 million tranche has a 5% coupon to yield 4.875%.

Both bonds (/AA-/) are due 2040.

Jefferies & Co., PNC Capital Markets, Janney Montgomery Scott LLC, Hilliard Lyons and Boenning & Scattergood were the underwriters.

Proceeds will be used to fund infrastructure improvements in Pennsylvania.

Aqua America is based in Bryn Mawr, Pa.

© 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.