Washington issuers dominate municipals; state sells nearly $1 billion of G.O. refunding bonds

By Cristal Cody

Prospect News, Jan. 31 - Municipal bond deals out of Washington stayed at the top of market news on Tuesday.

The State of Washington raised $978.63 million in two upsized bond offerings on Tuesday, an informed source said. The state plans another bond sale in February.

In addition, the University of Washington in Seattle intends to sell $257.89 million of revenue and refunding bonds.

Washington prices

In the primary market on Tuesday, Washington sold $978.63 million in two upsized bond offerings, an informed source said.

The state sold $715.22 million, upsized from $699.08 million, of series R-2012C various-purpose general obligation refunding bonds with a true interest cost of 2.622648%.

The bonds have serial maturities from 2015 through 2029 and 3% to 5% coupons.

Bank of America Merrill Lynch was the winning bidder out of nine bidders.

In the second tranche, the state sold $263.41 million, upsized from $260.14 million, of series R-2012D motor vehicle fuel tax G.O. refunding bonds with a true interest cost of 2.570007%.

The series R-2012D bonds have serial maturities from 2013 through 2039 and coupons from 3% to 5%.

Wells Fargo Bank, NA was the winning bidder out of eight bidders.

Montague DeRose and Associates, LLC and Seattle-Northwest Securities Corp. were the financial advisers.

Proceeds will be used to refund outstanding G.O. bonds.

Washington also intends to sell $346.08 million of series 2012D various-purpose G.O. bonds and $188.6 million of series 2012E motor vehicle fuel tax G.O. bonds through competitive sales on Feb. 28.

U-Dub to sell $257.89 million

Another deal is expected out of Washington from the University of Washington in Seattle, which intends to sell $203.11 million of series 2012A general revenue and refunding bonds and $54.78 million of series 2012B general revenue and refunding bonds, according to a preliminary official statement.

The series 2012A bonds have serial maturities from July 1, 2012 through July 1, 2034 and term bonds due in 2040 and 2041.

The series 2012B bonds mature on July 1 in the years 2012, 2014 through 2022 and 2024.

Barclays Capital Inc. is the bookrunner of the negotiated sale. Goldman Sachs & Co. and J.P. Morgan Securities LLC are co-managers.

Proceeds will be used to pay a portion of the costs of capital improvements to university facilities and to refund outstanding bonds.

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