Municipals improve along with Treasuries as new issues price; Colorado Health brings bonds

By Sheri Kasprzak

New York, May 3 – Municipals closed the session stronger, following in line with Treasuries, which were boosted by weaker economic data out of China, market insiders said.

Yields on top-rated municipals fell by as much as 4 basis points, even as Treasury yields ended the session 7 bps lower.

The 10-year benchmark Treasury note yield fell by 7 bps to close the session at 1.81%, and the 30-year bond yield slipped 5 bps to 2.66%. The five-year note yield ended the day 7 bps lower at 1.25% and the two-year yield 5 bps lower at 0.75%.

Children’s Hospital bonds price

Heading up the day’s pricing action, the Colorado Health Facilities Authority priced $172,695,000 of series 2016 hospital revenue bonds for Children’s Hospital Colorado.

The deal included $69,165,000 of series 2016A bonds and $103.53 million of series 2016B refunding bonds.

The 2016A bonds are due 2017 to 2036 with term bonds due in 2041 and 2044. The serial coupons range from 2% to 5% with yields from 0.77% to 2.89%. The 2041 bonds have a 5% coupon and priced at 117.007 to yield 3.02%, and the 2044 bonds have a 5% coupon and priced at 116.631 to yield 3.06%.

The 2016B bonds are due 2016 to 2033 with coupons from 2% to 5% and yields from 0.61% to 3.16%.

The bonds (A1/A+/) were sold through J.P. Morgan Securities LLC.

Proceeds will be used to finance capital improvements to the hospital and refund existing debt.

Whiting brings BP bonds

Elsewhere, the City of Whiting, Ind., priced $101,945,000 of series 2016A environmental facilities revenue bonds for BP Products North America Inc., said a pricing sheet. The deal was downsized from $120 million.

The bonds were sold through BofA Merrill Lynch and Morgan Stanley & Co. LLC.

The bonds are due March 1, 2046 and are variable-rate bonds with an initial yield of 2.19%.

Proceeds will be used to finance capital improvements to the sewer system at the company’s Whiting plant.

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