Municipals flat to softer as bulk of new issues hit market; Golden State brings $1.68 billion

By Sheri Kasprzak

New York, March 25 – Municipals yields were again mostly flat on the day, with some maturities seeing yields bumped down by about 1 basis point as weaker Treasuries pressured the market, traders said.

Yields remained flat in most maturities, but Treasuries took a hit on the day with the 10-year benchmark Treasury note yield rising by 4 bps.

Golden State deal downsized

Heading up the day’s heavy primary action, the Golden State Tobacco Securitization Corp. of California hit the market with its long-awaited $1,689,540,000 of series 2015A tobacco settlement asset-backed refunding bonds. The offering size was cut from $1,704,990,000.

The bonds (A1/A/A) were sold through joint bookrunners Barclays and Citigroup Global Markets Inc. with Jefferies & Co. as the co-senior manager.

The bonds are due 2016 to 2035 with term bonds due in 2040 and 2045, according to a term sheet. The serial coupons range from 2% to 5%. The 2040 bonds have a 5% coupon priced at 128.291, and the 2045 bonds have a 5% coupon priced at 130.478.

Proceeds will be used to refund the corporation’s series 2005A asset-backed bonds.

San Francisco college bonds price

Elsewhere during the day, the San Francisco Community College District came to market with $241.29 million of series 2015 general obligation refunding bonds.

The bonds (Aa3/A/) were sold through senior managers Morgan Stanley & Co. LLC and Jefferies.

The bonds are due 2015 to 2031 with 2% to 5% coupons and 0.11% to 3.33% yields, according to a pricing sheet.

Proceeds will be used to refund the district’s series 2002, 2004, 2006 and 2007 G.O. bonds.

North East deal ahead

Looking to the rest of the week, the North East Independent School District of Texas, one of several school districts on the calendar this week, is set to price $390.33 million of series 2015 unlimited tax refunding bonds.

Citigroup Global Markets and Stifel, Nicolaus & Co. Inc. are the senior managers for the bonds, which are due 2016 to 2037.

Proceeds will be used to refund the district’s series 2007A unlimited tax school building bonds.

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