Municipals hold steady even as Treasuries drop; Florida Board of Education prices PECO bonds

By Sheri Kasprzak

New York, Jan. 29 – Municipals were largely unmoved on the session Thursday even as Treasuries declined on a drop in jobless claims, market insiders said.

Yields were mostly flat by the end of the day as the last of the week’s new issues hit the market after a Northeastern snowstorm early in the week delayed some pricings.

Meanwhile, jobless claims fell to the lowest level in almost 15 years, sending Treasury yields back up after Wednesday’s rally. The 10-year note yield and 30-year bond yield both rose by 4 basis points on the day.

Florida BOE brings debt

Leading Thursday’s offerings was a day-to-day offering from the Florida Board of Education, which hit the market with $233,825,000 of series 2015A public education capital outlay bonds.

The bonds were sold competitively, but the winning bidder was not immediately available Thursday.

The bonds are due 2016 to 2029 with 2.7% to 5% coupons and 0.25% to 2.75% yields.

Proceeds will be used to refund existing PECO bonds

New Castle sells bonds

Elsewhere during the day, New Castle County, Del., priced $188.2 million of series 2015 general obligation bonds.

The bonds (Aaa/AAA/AAA) were sold through senior manager J.P. Morgan Securities LLC.

The bonds are due 2018 to 2035 and 2038 to 2040 with a term bond due in 2045. The serial coupons range from 4% to 5%, said a pricing sheet. The 2045 bonds have a 5% coupon and priced at 121.757.

Proceeds will be used to finance improvements to sewer, parks storm water, landfill, library, public safety and information system facilities and to refund the county’s series 2007A and 2009A G.O. bonds.

St. Luke’s bonds price

Also during the day, the Pocono Mountains Industrial Park Authority of Pennsylvania came to market with a delayed deal. The authority sold $80 million of series 2015 hospital revenue bonds for St. Luke’s Hospital.

The bonds (A3/A-/) were sold through BofA Merrill Lynch and Lancaster Pollard & Co.

The bonds are due 2040 and 2045. The 2040 bonds have a 5% coupon and priced at 115.311 to yield 3.20%, and the 2045 bonds have a 4% coupon and priced at 100.245 to yield 3.97%.

Proceeds will be used to acquire real property in Stroud Township, Monroe County, Pa., for the construction of SLM Hospital as well as the equipment and furnishing of the hospital.

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