Municipals end unchanged as new issues hit market; San Antonio brings $321.2 million offering

By Sheri Kasprzak

New York, July 14 – Municipals closed Tuesday unchanged, despite some strength for Treasuries, as the week’s new offerings hit the market, sources reported.

Yields on top-rated munis were flat even as Treasuries got a boost from a dip in June retail sales, which sent the five-year note yield down 4 basis points and the 10-year yield down 3 bps. Retail sales reportedly fell by 0.3% for June with economists expecting a gain of as much, the U.S. Census Bureau reported.

San Antonio bonds price

Heading up Tuesday’s pricing action, San Antonio, Texas, hit the market with $321,195,000 of series 2015 electric and gas system revenue refunding bonds.

The bonds (Aa1/AA/AA+) were sold through Goldman Sachs & Co. and Ramirez & Co. Inc.

The bonds are due 2018 to 2032 with 3.125% to 5% coupons, according to a term sheet.

Proceeds will be used to refund the city’s series 2007 electric and gas revenue bonds.

Education notes sold

Over in the competitive market, the Miami-Dade County School District of Florida sold $305 million of series 2015 tax anticipation notes.

The notes (MIG 1) are due June 30, 2016 and have a 1% coupon to yield 0.17%.

Proceeds will be used to finance capital expenditures ahead of the collection of ad valorem taxes.

Another education offering came from Colorado, which priced $115 million of series 2015A education loan program tax and revenue anticipation notes. The deal was downsized from $165 million.

The notes (MIG 1/SP-1+/) are due June 29, 2016, have a 1.5% coupon and priced at 101.132 to yield 0.29%.

Proceeds will be used to finance loans to certain school districts in the state to alleviate cash flow deficits for the coming fiscal year.

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