Municipals end stronger as offerings price; Mississippi Development prices $86.72 million deal

By Sheri Kasprzak

New York, Nov. 24 – Municipals closed Tuesday higher following in line with stronger Treasuries, market sources said.

Yields on top-rated munis fell by as much as 2 basis points after a decelerated third-quarter gross domestic product estimate bolstered Treasuries.

The five-year Treasury note yield fell by 4 bps after third-quarter GDP was downwardly revised to 2.1%.

Mississippi deal prices

Among the light primary activity Tuesday, the Mississippi Development Bank hit the market with $86.72 million of series 2015A power supply special obligation refunding bonds.

The bonds (Baa1/BBB/) were sold through Wells Fargo Securities LLC and Piper Jaffray & Co.

The bonds are due 2016 to 2035 with a term bond due in 2041, according to a term sheet. The serial coupons range from 4% to 5% with 0.62% to 3.66% yields. The 2041 bonds have a 4% coupon and priced at 98.742 to yield 4.08%.

Proceeds will be used to finance a loan to the Municipal Energy Agency of Mississippi, the proceeds of which will be used to refund the bank’s series 2006 special obligation bonds.

Florida housing bonds offered

Elsewhere, the Florida Housing Finance Corp. priced $55 million of series 2015-1 non-AMT homeowner mortgage revenue bonds. The deal was upsized from $50 million.

The bonds (Aaa) were sold through senior manager Morgan Stanley & Co. LLC.

The bonds are due 2017 to 2027 with term bonds due in 2030, 2035, 2040, 2045 and 2047, said a pricing sheet. The serial coupons range from 0.60% to 3% all priced at par. The coupon is 3.45% for the 2030 bonds, 3.75% for the 2035 bonds, 3.9% for the 2040 bonds, 3.95% for the 2045 bonds and 4% for the 2047 bonds. The 2047 bonds priced at 108.691, and the remaining term bonds priced at par.

Proceeds will be used to finance mortgage loans for affordable housing projects in the state.

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