Municipal yields improve by 1 or 2 bps; New York City Municipal Water prices $500 million

By Sheri Kasprzak

New York, March 9 - Municipal yields were seen better by 1 to 2 basis points on Tuesday as the week's primary action stacked up.

Among the secondary action Tuesday, the Florida Board of Education's lottery revenue bonds were trading. The 5% 2021 bonds were seen at 3.605%.

Elsewhere, the water and sewer revenue bonds recently priced by Miami-Dade County in Florida were moving. The 5% 2039s were seen at 4.711%.

Over on the primary side of the market, the New York City Municipal Water Finance Authority sold on Tuesday $500 million in series 2010EE second generation water and sewer taxable Build America Bonds, said a pricing sheet.

The bonds (Aa3/AA+/AA) were sold on a negotiated basis with Jefferies & Co. as the senior manager.

The bonds are due 2042, in a split maturity, with 6.011% and 6.491% coupons. Both priced at par.

Proceeds from the bonds will be used to fund water and sewer capital projects.

Loyola Marymount bonds price

Elsewhere in primary, the California Educational Facilities Authority brought $65.185 million in series 2010A revenue bonds for Loyola Marymount University on Tuesday, said a pricing sheet.

The bonds (A2) were sold through Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch.

The bonds are due 2010 to 2021 with term bonds due 2025, 2030 and 2040. The serials have coupons from 2% to 5%. The 2025 bonds have a split maturity with a 4.5% coupon, priced at 99.228, and a 5% coupon, priced at 103.284. The 2030 bonds have a 5% coupon, priced at par, and the 2040 bonds have a 5.215% coupon, priced at par.

Proceeds will be used to repurpose, renovate, improve and convert the university's Von der Ahe Library at the Westchester Campus in Los Angeles.

Ascension Health deal coming

Moving to Wednesday's primary activity, Ascension Health Group of Michigan is set to bring $1.346 billion in series 2010 revenue bonds through Morgan Stanley and Citigroup Global Markets Inc.

The offering includes $670.53 million in series 2010 fixed-rate bonds and $675.39 million in series 2010 variable-rate bonds.

Proceeds will be used to reimburse the health group for a variety of improvements and repairs to Ascension facilities.

D.C. to price $711.16 million

Also on Wednesday, the District of Columbia is expected to price $711.16 million in series 2010 revenue and revenue refunding bonds (Aa2/AAA/AA) through Goldman, Sachs & Co.

The sale includes $696.005 million in series 2010A tax-exempt income secured revenue refunding bonds and $15.155 million in series 2010B federally taxable income secured revenue bonds.

The 2010A bonds are due 2017 to 2031, and the 2010B bonds are due 2017.

Proceeds will be used to refund debt and finance the termination of swap agreements related to the refunded bonds.

California's $2 billion deal set

After completing the first of two retail order periods, the State of California is set to price its long-anticipated $2 billion offering of series 2010 various purpose general obligation bonds on Thursday.

The bonds (Baa1/A-/BBB) will be issued through J.P. Morgan Securities Inc. and Morgan Stanley.

Proceeds will be used to refund existing commercial paper and fund capital projects.

Detroit sale ahead

Looking to Thursday's other primary deals, the City of Detroit plans to bring $250 million in series 2010 distributable state aid G.O. bonds, according to a sales calendar.

The bonds (A1/AA-/) will be sold on a negotiated basis with Goldman Sachs as the senior manager.

Proceeds will be used to fund a portion of the city's accumulated and projected operating deficit.

Citizens Property plans $2 billion

Out on the horizon, the Citizens Property Insurance Corp. of Florida is expected to price $2 billion in high risk account senior secured bonds, said a preliminary official statement.

The deal includes series 2010A-1 bonds, series 2010A-2 short-term notes, series 2010A-3 Sifma floating-rate notes and series 2010A-4 Libor floating-rate notes.

The bonds (A2/A+/) will be sold on a negotiated basis with JPMorgan as the lead manager for the A-1 and A-2 bonds and Goldman Sachs as the senior manager for the A-3 and A-4 bonds.

Neither the exact breakdown of the bonds nor the maturity dates have been set.

Proceeds will be used to reimburse the corporation's proceeds accounts for amounts disbursed to pay claims.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.