Michigan sells $225 million G.O. bonds; South Carolina Transportation prices $270.65 million

By Cristal Cody

Tupelo, Miss., April 4 - The State of Michigan saw robust bidding for its sale of $225 million of taxable school loan and refunding general obligation bonds on Wednesday, an informed bond source said.

The competitive sale received eight bidders.

Also in the day's pricing action, the South Carolina Transportation Infrastructure Bank sold $270.65 million of revenue refunding bonds.

Light activity is expected the remainder of the week with many market participants heading out early on Thursday ahead of the Good Friday holiday.

On Wednesday, the bond markets saw choppy trading as stocks fell and Treasuries made gains following Tuesday's sell-off.

The benchmark 10-year Treasury note yield fell 8 basis points to 2.22%. The 30-year bond yield dropped 7 bps to 3.36%.

The Dow Jones Industrial Average fell about 125 points on the day.

Michigan prices $225 million

In Wednesday's pricing action, the State of Michigan priced $225 million of series 2012A taxable school loan and refunding general obligation bonds on Wednesday, an informed bond source said.

The bonds (Aa2/AA-/AA-) were sold competitively with J.P. Morgan Securities LLC winning out of eight bidders. The bonds priced with a true interest cost of 3.08%.

The bonds due 2013 through 2017 priced with coupons from 0.45% to 3.85% to yield 0.45% to 3.89%.

Robert W. Baird & Co. Inc. was the financial adviser.

Proceeds will be used to make loans to local school districts and to refund existing debt.

South Carolina Transportation prices

Also in the market, the South Carolina Transportation Infrastructure Bank raised $270.65 million of series 2012A revenue refunding bonds on Wednesday, according to an informed bond source.

The bonds (A1//A) priced on a competitive basis with Citigroup Global Markets Inc. the winning bidder.

Additional pricing terms were not immediately available.

Public Financial Management Inc. was the financial adviser.

The bonds are due 2013 to 2033.

Proceeds will be used to refund the bank's series 2001A and 2002A revenue bonds.

South Carolina plans deal

Coming up, the State of South Carolina plans to sell $76.84 million of general obligation state institution bonds in five parts, according to a notice of sale.

The bonds will price through a competitive sale on April 11.

The deal includes $23,235,000 of series 2012A general obligation refunding bonds for the University of South Carolina; $13,625,000 of series 2012B refunding bonds for the Medical University of South Carolina; $22,815,000 of series 2012C refunding bonds for Clemson University; and $14,565,000 of series 2012D refunding bonds and $2.6 million of series 2012E G.O. bonds for Winthrop University.

Proceeds will be used to refund outstanding bonds.

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