Municipals close session firmer; University of Pittsburgh Medical Center prices $125 million

By Sheri Kasprzak

New York, Sept. 25 - Municipals made gains on Wednesday along with Treasuries following the successful auction of five-year Treasury notes, insiders reported.

Munis have been following a rallying Treasuries market in recent days, and Wednesday was no exception. Yields shrank by 2 basis points to 4 bps.

The five-year Treasury note yield fell by 4 bps to end at 1.386%. The 10-year Treasury note yield ended 4 bps lower at 2.618%, and the 30-year yield was lower by 3 bps at 3.658%.

UPMC bonds price

Amid the day's primary action, the Pennsylvania Economic Development Financing Authority hit the market with $125 million of series 2013A revenue bonds for the University of Pittsburgh Medical Center, said a pricing sheet.

The bonds (Aa3/A+/) were sold through J.P. Morgan Securities LLC.

The bonds are due 2014 to 2028 with term bonds due in 2033, 2038 and 2043. The serial coupons range from 1.25% to 5%, and yields range from 0.19% to 4.37%. The 2033 bonds have a 5% coupon and priced at 101.377 to yield 4.82%, and the 2038 bonds have a 5% coupon and priced at 99.71 to yield 5.02%. The 2043 bonds have a 5% coupon and priced at 98.923 to yield 5.07%.

Proceeds will be used to construct capital projects for the medical center.

Monroeville sold bonds

It's the second session in a row in which bonds were issued for the medical center. The Monroeville Finance Authority brought $70.78 million of series 2013B revenue refunding bonds for UPMC on Tuesday. That deal was downsized from $100 million.

The bonds (Aa3/A+/) were sold through senior manager J.P. Morgan Securities LLC.

The bonds are due 2014 to 2028 with term bonds due in 2033 and 2039. The serial coupons range from 1.25% to 5%. The 2033 bonds have a 4.75% coupon and priced at 98.233, and the 2039 bonds have a 5% coupon and priced at 99.419.

Proceeds will be used to current refund the medical center's series 1998 and 2010 revenue bonds and advance refund its 2009 revenue bonds.

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