Muni yields rise as new issues hit the market; Georgia offers up $1.29 billion of G.O. bonds

By Sheri Kasprzak

New York, June 9 – Municipal prices were lower on the day Tuesday as Treasuries dropped, market insiders said. Meanwhile, the largest deal of the week priced, a $1.29 billion general obligation deal from Georgia.

Muni yields were higher by 2 to 3 basis points, said a trader in the afternoon, pushed in part by higher Treasury yields. The 30-year Treasury bond yield rose by 4 bps to end at 3.15%. The 10-year benchmark yield rose by 3 bps.

Georgia brings G.O. bonds

Georgia hit the market with $1,290,325,000 of series 2015 G.O. bonds in three tranches.

The deal included $563.35 million of series 2015A bonds, $447.83 million of series 2015B taxable bonds and $279,145,000 of series 2015C refunding bonds.

The 2015A bonds are due 2016 to 2035 with 3% to 5% coupons.

The 2015B bonds are due 2016 to 2030 with a term bond due in 2035. The serial coupons range from 0.30% to 4.25%. The 2035 bonds have a 4.15% coupon and priced at par. The full details of the series 2015B bonds were not immediately available Tuesday.

The 2015C bonds are due 2016 to 2020 with 2% to 5% coupons.

The bonds (Aaa//AAA) were sold competitively. The financial adviser did not immediately respond to calls for the winning bidder.

Proceeds will be used to finance capital projects and refund G.O. debt.

The state last came to market in June 2014 when it sold $982,905,000 of G.O. bonds with maturities from 2015 to 2034 and yields from 0.085% to 4%.

Maine prices debt

Another state G.O. offering came from Maine, which priced $102,555,000 of series 2015 G.O. bonds.

The deal included $14.2 million of series 2015A taxable bonds and $88,355,000 of series 2015B tax-exempt bonds, said a pricing sheet.

The 2015A bonds are due 2016 to 2017 with 0.85% to 1.25% coupons and yields from 0.35% to 0.85%.

The 2015B bonds are due 2017 to 2025 with 3% to 5% coupons and 0.69% to 2.47% yields.

The bonds (Aa2/AA/) were sold competitively. Morgan Stanley & Co. LLC won the bid for the 2015A bonds at a 0.69988% true interest cost. Barclays took the series 2015B bonds at a 2.010105% TIC.

Proceeds will be used to pay at maturity bond anticipation notes due June 30, 2015.

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