Municipals close unchanged; Katy ISD, Texas, offers $268.61 million; New Mexico Finance prices

By Sheri Kasprzak

New York, Jan. 28 – Municipals wrapped up unchanged Thursday, largely ignoring a flip-flopping Treasuries market, traders reported.

The triple-A 10-year benchmark muni yield closed at 1.83%, and the 30-year bond yield ended at 2.83%.

Meanwhile, the Treasuries market seesawed after oil prices rebounded by 3%. Still, a successful auction of $29 billion of seven-year notes was enough to turn yields around.

Back in Muni Land, the last of the week’s new issues hit the market a day after the Chicago Board of Education elected to hold off on its $875 million general obligation bond deal.

Katy ISD brings debt

Among the larger deals pricing, the Katy Independent School District of Texas sold $268.61 million series 2016 school building and refunding bonds.

The deal included $245,095,000 of series 2016A unlimited tax school building bonds and $23,515,000 of series 2016B unlimited tax refunding bonds, according to a term sheet.

The 2016A bonds are due 2017 to 2040 with a term bond due in 2046. The serial coupons range from 4% to 5%. The 2046 bonds have a 4% coupon and priced at 105.48.

The 2016B bonds are due 2020 and 2032 to 2038. The 2020 bonds have a 4% coupon and priced at 111.461. The serial bonds have 3% to 5% coupons.

The bonds (Aa1/AA/) were sold through senior manager Citigroup Global Markets Inc.

Proceeds will be used to construct, acquire, equip, renovate and improve the district’s school facilities and refund the district’s series 2008C and 2009 school building bonds.

New Mexico Finance sells bonds

Over on the competitive side, the New Mexico Finance Authority came to market with $52.07 million series 2016A tax-exempt senior-lien public project revolving fund revenue bonds.

J.P. Morgan Securities LLC won the bid for the bonds at a 1.937188% true interest cost.

The bonds (Aa1/AAA/) are due 2016 to 2036 with 2% to 5% coupons and 0.18% to 3.05% yields.

Proceeds will be used to originate loans to and/or purchase securities from government entities that utilized authority funds for capital projects.

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