Municipals trade lower in tandem with Treasuries on quiet day; Baylor set to bring bond deals

By Cristal Cody

Tupelo, Miss., Aug. 8 - Municipals traded about 2 basis points lower across the curve, tracking Treasuries as activity slowed on Wednesday, a trader said.

"Down just a little bit," the trader said. "It's been pretty steady on secondary."

The 10-year municipal bond yield traded on Wednesday at 1.86%.

The benchmark 10-year Treasury note yield rose 2 bps to end at 1.65%.

The primary calendar for the week is expected to be about $5 billion, and issuance next week is expected to pick up, bond sources said.

Some new deals coming up include a $777.18 million offering of electric revenue bonds from Energy Northwest in Richland, Wash., according to a preliminary official statement.

Baylor College of Medicine also plans several bond offerings to refund outstanding debt.

Energy Northwest to price

According to the preliminary official statement, Energy Northwest will price $777.18 million of Columbia Generating Station electric revenue bonds, which includes $34,435,000 of series 2012D bonds and $742,745,000 of series 2012E bonds.

The series 2012D bonds have serial maturities from 2025 through 2032 and terms due 2037 and 2044.

The series 2012E bonds have serial maturities in 2015 and 2018 though 2027.

Bank of America Merrill Lynch, Citigroup and Goldman Sachs & Co. are the bookrunners.

Proceeds will be used to acquire fuel for the generating station and to finance repairs, renovations and improvements.

Baylor to sell $277.96 million

A new offering is scheduled from Baylor College of Medicine of Texas, which plans to sell $277,955,000 of medical facilities mortgage revenue refunding bonds (/A-/) through the Harris County Cultural Education Facilities Finance Corp., according to preliminary official statements.

The deal includes $202,955,000 of series 2012A medical facilities mortgage revenue refunding bonds set to price through a negotiated sale managed by Barclays and Bank of America Merrill Lynch.

Harris County Cultural Education Facilities also will sell $75 million of series 2012B medical facilities mortgage revenue refunding bonds due Nov. 15, 2045 in a negotiated sale managed by Bank of America Merrill Lynch.

Proceeds from both issues will be used to refund outstanding bonds.

Baylor plans $111.85 million

Baylor College of Medicine also intends to sell $111,845,000 of medical facilities mortgage bonds, according to a preliminary offering circular.

The series 2012 bonds (/A-/) will price through a negotiated sale managed by Barclays and Bank of America Merrill Lynch.

Proceeds will be used to refund outstanding bonds.

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