Maryland Transportation taps market in two deals; Connecticut prices; California sale ahead

By Cristal Cody

Prospect News, April 11 - The Maryland Transportation Authority sold $190.56 million of airport parking revenue refunding bonds and $50.91 million of revenue bonds for the Baltimore/Washington International Thurgood Marshall Airport on Wednesday.

"The authority was extremely pleased with the bids," an informed source said. "It was very competitive with seven bidders for each issue. The bids were very close."

The State of Connecticut sold $555 million of general obligation bonds (Aa3/AA/AA) in a negotiated sale on Wednesday, a source with the state said. The final pricing details were not available by press time.

Coming up on Thursday, the State of California will price $1.3 billion of various purpose G.O. bonds (A1/A-/A-) after a two-day retail order period.

The state said on Tuesday that retail investors placed orders for $329 million of the bonds.

The deal includes $890 million of new money for infrastructure projects and $410 million of refunding bonds.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Morgan Stanley & Co. LLC are the lead managers. Fidelity Capital Markets is co-senior manager.

Proceeds will be used to fund construction projects and to current and advance refund some of the state's outstanding G.O. bonds for debt service savings.

Maryland Transportation sells

In the day's pricing action, the Maryland Transportation Authority sold $190.56 million of airport parking revenue refunding bonds in two tranches for the Baltimore/Washington International Thurgood Marshall Airport, an informed bond source said.

The authority sold $190.56 million in two tranches of airport parking revenue refunding bonds (A2/A/A-) that included a restructured $66,965,000 of series 2012A bonds and a restructured $123,595,000 of series 2012B bonds. The sale was originally expected to include $71,860,000 of series 2012A bonds and $139,505,000 of series 2012B bonds.

The bonds priced with an aggregate true interest cost of 3.06%. Citigroup was the winning bidder of the competitive sale.

The bonds priced with 4% to 5% coupons to yield 0.43% to 3.85% over the maturities from 2013 through 2027.

Public Financial Management, Inc. was the financial adviser.

Proceeds will be used to refund outstanding maturities of the series 2002A and 2002B airport parking revenue bonds.

Second sale

Also on Wednesday, the Maryland Transportation Authority priced $50,905,000 of series 2012A passenger facility charge revenue bonds (A2/A/A) for the Baltimore/Washington International Thurgood Marshall Airport, an informed bond source said.

The bonds priced with a TIC of 3.73%.

Citigroup was the winning bidder of the competitive sale.

The bonds priced with 4% to 5% coupons to yield 0.74% to 4.3%. The bonds have serial maturities from 2013 through 2032.

Public Financial Management was the financial adviser.

Proceeds will be used to finance a portion of the costs of construction of airport facilities projects at the airport.

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