Munis hold steady; Maryland Economic Development brings $133.59 million; Alabama prices deal

By Sheri Kasprzak

New York, Feb. 25 – Municipals rounded out the session Thursday mostly flat, market insiders said, as the week’s final offerings hit the market.

The triple-A 10-year municipal bond yield closed the day at 1.79%, and the 30-year bond yield remained at 2.82% Thursday.

Elsewhere in the market, inflows to municipal mutual funds were positive at $857 million for the week, bringing the total this year to $8 billion, the strongest start to the year in three years, a market source said Thursday.

Maryland university prices

Heading up Thursday’s new-issue action, the Maryland Economic Development Corp. priced $133,595,000 of series 2016 student housing revenue bonds for the University of Maryland at College Park.

The bonds (Baa2/AA/) were sold through RBC Capital Markets LLC.

The bonds are due 2017 to 2031 with term bonds due in 2035 and 2043. The serial coupons range from 4% to 5% and yields from 0.61% to 2.92%. The 2035 bonds have a 5% coupon and priced at 116.319 to yield 3.12%, and the 2043 bonds have a 5% coupon and priced at 113.417 to yield 3.43%.

Proceeds will be used to finance capital improvements to student housing facilities at the university.

Alabama sells debt

Elsewhere, Alabama sold $125,195,000 of series 2016 general obligation bonds.

The deal included $98.5 million of series 2016A bonds and $26,695,000 of series 2016B bonds.

The 2016A bonds are due 2017 to 2036 with 3% to 5% coupons and yields from 0.57% to 3.14%. The 2016B bonds are due 2017 to 2021 with 5% coupons and yields from 0.55% to 1.05%.

The bonds (Aa1/AA+/) were sold competitively. The issuer did not immediately return calls seeking the winning bidder.

Proceeds will be used to finance economic development projects and the recruitment of industrial prospects to the state.

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