Municipals mixed; Los Angeles Community College prices; North Carolina preps bond offering

By Cristal Cody

Eureka Springs, Ark., July 21 – Municipal bonds ended Thursday’s session unchanged to about 2 basis points softer in the 10-year and 30-year maturities.

“They’re just kind of drifting around with no real direction,” a market source said. “A lot of people are long a lot of bonds, which is worrisome, but there’s a lot of money coming into the market on Aug. 1 and a lot of money coming into the market on Aug. 15. Supply is very manageable, and the new issues this week all did very well.”

Columbus, Ohio, tapped the market on Thursday with a competitive sale of $481.4 million of series 2016 general obligation securities (Aaa/VMIG1/AAA/AAA), a source said.

Treasuries closed Thursday stronger in trading as stocks slipped over the session, with the 10-year note yield down 3 bps at the market close to 1.53%.

College bonds price

In new issuance, the Los Angeles Community College District detailed its $300 million offering of election of 2008 series 2016-1 G.O. bonds.

The bonds (Aa1/AA+) priced with 2% to 4% coupons and 0.49% to 2.32% yields across the maturities from 2017 through 2035, according to a term sheet and an official statement. The deal also included a 3% term bond due Aug. 1, 2040 priced to yield 2.86%.

The bonds were sold on a negotiated basis with J.P. Morgan Securities LLC and Backstrom McCarley Berry & Co. LLC as the senior managers.

Proceeds will be used to finance improvements and upgrades to college campuses, including earthquake safety improvements.

San Diego schools sell TRANs

San Diego Unified School District in San Diego County, Calif., also priced $195 million of 2% series A 2016-17 tax and revenue anticipation notes (/SP-1+/) to yield 0.58%, according to an official statement.

The notes are due June 30, 2017.

BofA Merrill Lynch and Citigroup Global Markets Inc. managed the negotiated transaction.

Proceeds will be used to provide funds to meet fiscal year 2016-17 general fund expenditures, including operating expenses, capital expenditures and discharge of district debt.

North Carolina on tap

The State of North Carolina is offering $200 million of series 2016B G.O. public improvement (Connect NC Bond Act of 2015) bonds, according to a preliminary official statement.

The bonds (Aaa/AAA/AAA) have serial maturities from 2017 through 2036.

The bonds will price through a competitive offering on July 27.

Davenport & Co., LLC is the financial adviser for the deal.

Proceeds will be used to finance capital improvements throughout the state.

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