Munis widen 2 bps to 4 bps; New York Housing, Connecticut Health price; deal pipeline thins

By Cristal Cody

Eureka Springs, Ark., June 28 – Municipal bonds edged wider on the short and long ends in light market activity on Tuesday.

“Munis are a little bit weaker today by 2 to 4 basis points,” a trader said. “There’s not much activity because of the holiday week. The feeling right now is we’re going to go to lower yields. We had a little backup today, but one day does not a market make.”

Investors were able to pick up cheaper Treasuries on Tuesday with government bonds flat to softer over the day. The 10-year note yield rose 1 bp to 1.43%.

Several deals were expected to price on Tuesday, including a $1.3 billion general obligation bond offering from Washington state.

Primary action is expected to stay subdued ahead of the holiday weekend.

In new issuance, the New York State Housing Finance Agency priced $302.69 million of affordable housing revenue bonds.

The Connecticut Health and Educational Facilities Authority detailed its $499.32 million offering of new money and remarketing bonds.

In addition, details emerged on Iowa’s $265,425,000 sale of IJobs program special obligation refunding bonds.

Looking ahead to early July, South Carolina Transportation Infrastructure Bank plans to price $204,015,000 of series 2016A revenue refunding bonds.

New York Housing sells bonds

The New York State Housing Finance Agency priced $302.69 million of series 2016C affordable housing revenue bonds (Aa2//) at par, according to an official statement.

The negotiated offering was underwritten by managers Morgan Stanley & Co., LLC, J.P. Morgan Securities LLC, Siebert Brandford Shank & Co., LLC, Academy Securities, BofA Merrill Lynch, Citigroup Global Markets Inc., Drexel Hamilton, LLC, Jefferies LLC, Loop Capital Markets LLC and Wells Fargo Securities LLC.

Proceeds will be used to finance six mortgage loans for the construction or acquisition and rehabilitation of certain multi-family housing projects.

Iowa prices $265.4 million

Iowa priced $265,425,000 of IJobs program special obligation refunding bonds (Aa2/AA/), according to a new issue statement.

The series 2016A bonds priced with 2% to 5% coupons across the serial maturities from 2017 through 2029.

Citigroup and RBC Capital Markets, LLC were the lead managers of the negotiated offering.

Proceeds will be used to refund the state’s outstanding series 2009A bonds due or to be redeemed by June 1, 2019.

Connecticut Health prices

The Connecticut Health and Educational Facilities Authority sold $499.32 million of bonds (Aaa/AAA/) in two parts, according to a market source and a new issue statement.

The deal included $399.32 million of series 2016A Yale University revenue bonds due July 1, 2042 and a $100 million remarketing of series 2013A Yale University revenue bonds due July 1, 2042.

The bonds have mandatory tender dates.

Barclays and JPMorgan led the negotiated sale.

Proceeds will be used to currently refund the authority’s outstanding series Z-1 Yale University revenue bonds and series X-1 Yale University revenue bonds.

South Carolina deal ahead

Coming up in the pipeline, South Carolina Transportation Infrastructure Bank plans to price $204,015,000 of series 2016A revenue refunding bonds (A1//A), according to a preliminary official statement.

The bonds have serial maturities from 2017 through 2037.

Public Financial Management, Inc. is the financial adviser for the competitive sale on July 7.

Proceeds from the deal will be used to refund all or a portion of the bank’s outstanding series 2007A South Carolina Transportation Infrastructure Bank revenue bonds and series 2007B South Carolina Transportation Infrastructure Bank revenue refunding bonds.

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