Municipals close flat to slightly better amid solid primary action; Texas A&M prices bonds

By Sheri Kasprzak

New York, March 22 – Municipals ended the session flat to slightly better, market insiders said, amid strong new-issue action.

Traders said the 10-year note yield ended the day 2 basis points lower at 1.91% and the 30-year bond yield was flat at 2.93%.

The market largely ignored weaker Treasuries, which were hit by more talk of interest rate hikes in the coming months.

Meanwhile, new-issue action got off to a busy start ahead of the Good Friday holiday.

Texas A&M brings debt

Among the larger offerings, Texas A&M University hit the market with $417,095,000 of series 2016 revenue financing system bonds.

The deal included $91.52 million of series 2016A taxable bonds and $325,575,000 of series 2016B taxable bonds.

The 2016A bonds are due 2016 to 2031 with a term bond due in 2037. The serial coupons range from 0.51% to 3.556% and all priced at par. The 2037 bonds have a 3.993% coupon and priced at par.

The 2016B bonds are due 2017 to 2031 with term bonds due in 2037 and 2045. The serial coupons range from 0.85% to 3.556% and all priced at par. The 2037 bonds have a 3.993% coupon, and the 2045 bonds have a 4.113% coupon. Both priced at par.

The bonds (Aaa/AAA/) were sold on a negotiated basis. Raymond James/Morgan Keegan and Siebert Brandford Shank & Co. LLC were the senior managers for the 2016A bonds, and RBC Capital Markets LLC and Goldman Sachs & Co. were the lead managers for the 2016B bonds.

Proceeds will be used to finance capital improvements to the university facilities and to refund the series 2008 revenue financing system bonds.

Kentucky turnpike bonds price

Elsewhere, the Kentucky Turnpike Authority brought $222.67 million of series 2016A economic development road revenue refunding bonds.

The bonds (/AA-/A+) were sold through Morgan Stanley & Co. LLC.

The bonds are due 2016 and 2019 to 2029 with 2% to 5% coupons and yields from 0.38% to 3%.

Yields were repriced lower with the 2029 bond ending at a 3% and 5% bifurcated coupon to yield 2.70% to the 10-year call, a trader said.

Proceeds will be used to refund existing road revenue bonds.

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