Intermediate, long bonds falter amid light supply; NCH Healthcare prices $104.43 million bonds

By Sheri Kasprzak

New York, March 29 - Municipal yields were again weaker, particularly in the middle and long portions of the yield curve, as investors continued to be reluctant about buying municipals, market insiders said.

"There's still a lot of hesitance, so until we have buyers, we're going to see some problems," said one trader.

"Out long, yields are probably up by 3 bps, probably 2 bps higher between 10 and 20 years. Supply is still low, but there are no buyers for what is out there."

Meanwhile, the new issue calendar is still thin for the remainder of the week. Most of the pricing action will take place on Wednesday, and most of those bonds will be sold competitively.

On Monday, the Waterloo Community School District of Iowa competitively sold $69.305 million of series 2011 school infrastructure sales, services and use tax revenue refunding bonds. Wells Fargo Bank, NA took the $52.925 million series 2011A tranche with a 5.02% true interest cost, and Morgan Keegan & Co. Inc. won the $16.38 million series 2011B tranche with a 5.973% TIC, Waterloo chief financial officer Michael Coughlin said in an interview Tuesday.

"The board of directors believed it was in the best interest of the district to sell the bonds at a competitive sale, even though it is not required to sell bonds competitively by statute," Coughlin told Prospect News.

The 2011A bonds are due 2012 to 2030 with coupons from 4% to 5.25%. The 2011B bonds are due July 1, 2025 and have a 5.85% coupon priced at par.

Collier bonds price

Heading up Tuesday's primary action, the Collier County Industrial Development Authority of Florida sold $104.425 million of series 2011 health-care facilities revenue bonds for NCH Healthcare System, said a pricing sheet.

The bonds were sold through Morgan Stanley & Co. Inc.

The bonds are due 2012 to 2022 with term bonds due in 2026, 2031 and 2039. The serial coupons range from 3% to 5%. The 2026 bonds have a 5.5% coupon priced at 98.464, and the 2031 bonds have a 6% coupon priced at 98.036. The 2039 bonds have a 6.25% coupon priced at 98.043.

Proceeds will be used to finance or refinance the costs of acquiring, constructing and renovating NCH facilities and to refund the health-care system's series 1993 and/or 1996 bonds.

The health-care system is based in Naples.

Lee County prices deal

Also during the session, Lee County, Fla., priced $80.465 million of series 2011 water and sewer refunding revenue bonds, said a term sheet.

The bonds (Aa3/AA/AA-) were sold through J.P. Morgan Securities LLC.

The bonds are due 2012 to 2026 with coupons from 3% to 5.25%.

Proceeds will be used to refund the county's series 1999A water and sewer revenue bonds.

The county seat is Fort Myers.

Miami-Dade sale ahead

Looking ahead on the primary calendar, the Sunshine State Governmental Financing Commission will lead Wednesday's offerings with its $253.21 million sale of series 2011A revenue bonds (Aa3/A+/) for Miami-Dade County.

The bonds will be sold through JPMorgan and Morgan Stanley.

Proceeds will be used by Miami-Dade County to refinance some of its existing debt.

© 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.