Yields firm by 2 to 5 bps; Broad Institute, Mass., sells $343.49 million; MEAG upsizes deal

By Sheri Kasprzak

New York, April 28 - Municipal yields continued their winning streak on Thursday. The middle of the curve improved by as much as 5 basis points. Shorter and longer bonds were improved by 2 to 3 bps.

"There's not as much movement short and long, but right in the belly, yields are down by 4 to 5 [bps]," said one trader reached during the session.

Alan Schankel, managing director with Janney Montgomery Scott LLC, said that municipals continued to benefit from low supply.

"The forward calendar remains light with visible supply in the $5 billion range," he said Thursday.

"Municipal mutual fund outflows continued ... for a 24th week, with $1.1 billion in redemptions, likely reflecting investor liquidation for federal tax bills. We suspect that with tax bills past, and two weeks of market strength reflected in higher fund NAVs, the pace of withdrawals will slow to below the $600 million weekly average of March."

Broad Institute bonds price

Heading to Thursday's light primary action, the Massachusetts Development Finance Agency brought to market $343.485 million of series 2011 revenue bonds for the Broad Institute.

The sale included $259.93 million of series 2011A bonds and $83.555 million of series 2011B taxable bonds, said a pricing sheet.

The 2011A bonds are due 2021 to 2028 with term bonds due in 2031, 2037 and 2041. The serial coupons range from 3.7% to 5.25%. The 2031 bonds have a 5% coupon priced at 99.62, and the 2037 bonds have a 5.25% coupon priced at 98.326. The 2041 bonds have a 5.375% coupon priced at 98.893.

The 2011B bonds are due 2012 to 2020 with coupons from 1.15% to 4.868%, all priced at par.

The bonds (A1/AA-/) were sold through Morgan Stanley & Co. Inc.

Proceeds will be used to construct, equip and acquire a 12-story laboratory in Cambridge, Mass.

MEAG sells bonds

Elsewhere, the Municipal Electric Authority of Georgia priced $338.835 million of series 2011 subordinated bonds (A2), said a pricing sheet.

The upsized deal included $245.4 million of series 2011A project one subordinated bonds, $30.53 million of series 2011B project one subordinated bonds, $965,000 of series 2011C taxable project one subordinated bonds, $5.96 million of series 2011A general resolution project subordinated bonds, $54.2 million of series 2011B general resolution project subordinated bonds and $1.78 million of series 2011C taxable general resolution project subordinated bonds.

The bonds were sold through Morgan Stanley.

The 2011A project one bonds are due 2013 to 2021 with 3% to 5% coupons. The 2011B project one bonds are due 2014 to 2021 with coupons from 3% to 5%. The 2011C project one bonds are due in 2013 and have a 1.75% coupon priced at par.

The 2011A general resolution bonds are due 2014 to 2021 with coupons from 3% to 4%. The 2011B general resolution bonds are due 2014 to 2021 with 3% to 5% coupons. The 2011C bonds are due 2013 to 2014 with 1.75% to 2.1% coupons, both priced at par.

Proceeds will be deposited into a construction fund for a variety of capital improvements.

Magnolia offers deal

Also during the session, the Mississippi Development Bank came to market with $82.945 million of series 2011A special obligation bonds for the Magnolia Regional Health Center, said a pricing sheet.

The bonds (Baa2) were sold through Morgan Keegan & Co. Inc.

The bonds are due 2011 to 2024 with term bonds due in 2026, 2031 and 2036. The serial coupons range from 3% to 6%. The 2026 bonds have a 6.25% coupon priced at par, and the 2031 bonds have a 6.5% coupon priced at 97.243. The 2036 bonds have a 6.75% coupon priced at 97.62.

Proceeds will be used to finance the construction, improvement, furnishing and equipment of the medical center's imaging department, registration and pre-admission testing, emergency department and surgical center, as well as refund the medical center's series 1998 bonds.

Magnolia Regional is located in Corinth, Miss.

Carle deal planned

Looking to upcoming offerings, the Illinois Finance Authority is expected to sell $230.83 million of series 2011A revenue bonds for the Carle Foundation, said a preliminary official statement.

The bonds (/A+/AA-) will be sold on a negotiated basis with Barclays Capital Inc. and Goldman Sachs & Co. as the senior managers.

Proceeds will be used to reimburse the foundation for the costs of constructing, equipping, acquiring and renovating its health-care facilities and to refinance existing debt.

Based in Chicago, the authority provides funding for nonprofit organizations. The Carle Foundation, based in Urbana, operates the Carle Foundation Hospital and the Carle Clinic Association.

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