Municipal prices slip again amid heavy primary action; Dasny upsizes to $503.44 million

By Sheri Kasprzak

New York, June 3 – Municipals ended the day higher as continued supply pressured the market and Treasuries continued to slide, market insiders said.

Yields on top-rated municipals were higher by as much as 6 basis points, said a trader in the afternoon.

Meanwhile, Treasuries were weaker with the 10-year note yield rising by 11 bps and the 30-year bond yield up by 9 bps.

Elsewhere, new-issue action dominated, led by an upsized deal from the Dormitory Authority of the State of New York.

Dasny deal upsized

The authority brought $503,435,000 of series 2015A revenue bonds for the North Shore-Long Island Jewish Obligated Group. The deal was upsized from $500 million.

The bonds (A3/A-/) were sold through senior managers Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.

The bonds are due 2016 to 2037 with term bonds due in 2042 and 2043. The serial coupons range from 2% to 5%. The 2042 bonds have a 4.125% coupon priced at 97.535, and the 2043 bonds have a 5% coupon priced at 107.567.

Proceeds will be loaned to North Shore-Long Island Jewish to finance capital projects and refund outstanding debt for the obligated group.

Clark County prices debt

Among the other deals, Clark County, Nev., hit the market with $165,125,000 of series 2015B junior-lien airport system revenue bonds for the McCarran International Airport.

The bonds (A2/A/) were sold through Citigroup Global Markets.

The bonds are due in 2017 with a 3% coupon priced at 103.414 to yield 1.25% and a 5% coupon priced at 107.317 to yield 1.25%.

Proceeds will be used to repay the airport’s series 2013C-1 notes.

Arlington details offering

In other new-issue news, Arlington County, Va., removed the refunding component on its recent $77.44 million offering, cutting the issue size from $95.78 million, said Jason Friess, director of finance for the county’s department of management and finance.

The bonds (Aaa/AAA/AAA) were sold competitively on Tuesday with Morgan Stanley winning the bid at a 2.8% true interest cost, said Friess in an interview Wednesday.

“The county is not required to issue competitively, but as long as market conditions permit, we like to pursue competitive sales versus negotiated,” Friess said.

The bonds are due 2015 to 2034 with 3% to 4% coupons and yields from 0.25% to 3.41%.

Proceeds will be used to finance various capital improvements.

© 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.