Municipal prices rise as new issues hit market; New York Urban Development prices $1.1 billion

By Sheri Kasprzak

New York, Dec. 8 – Municipals edged higher on the session Tuesday as a larger new-issue slate began to price, insiders said, led by the week’s biggest offering.

Yields on top-rated munis were lower by 1 basis point to 2 bps with the 10-year bond yield falling 1 bp to 2.03%, largely ignoring a slightly weaker Treasuries market after oil prices stabilized.

Meanwhile, low trading volume is a continuing theme, with just $5.1 billion of volume reported by the Municipal Securities Rulemaking Board on Monday, the lightest level since mid-October. Just last month, the MSRB noted that third-quarter volume was down 18% at $555 billion.

New York Urban deal prices

Heading up the heavier new-issue slate Tuesday, the New York State Urban Development Corp. offered $1,143,580,000 of series 2015 general purpose state personal income tax revenue bonds.

The bonds were sold competitively.

The deal included $906.02 million of series 2015A bonds and $237.56 million of series 2015B taxable bonds, according to a term sheet.

The 2015A bonds are due 2016 to 2025 and 2036 to 2042 with a term bond due in 2045. The serial bonds have 5% coupons with 0.40% to 3.07% yields. The 2045 bonds have a 5% coupon and priced at 115.869 to yield 3.10%.

The 2015B bonds are due 2017 to 2021 with 1.04% to 2.17% coupons and all priced at par.

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

Brighton school bonds offered

Among the other offerings sold, the Brighton School District No. 27J of Colorado hit the market with $160 million of series 2015 general obligation bonds.

The bonds (Aa2/AA-/) were sold through senior manager RBC Capital Markets LLC.

The bonds are due 2016 to 2036 with a term bond due in 2040. The coupons were not immediately available. The yields ranged from 0.49% to 2.98%. The 2040 bonds have a 3.13% yield.

Proceeds will be used to finance capital improvements to the district.

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