Municipals rise; Colorado Health sells $221.97 million SCL bonds; Denver water board prices

By Sheri Kasprzak

New York, May 11 – Municipals increased on the session after Treasuries improved on a successful 10-year note auction, market insider said.

The 10-year triple-A bond yield fell by 2 basis points to 1.64%, and the 30-year bond yield fell 2 bps to 2.63%.

Meanwhile, the 10-year Treasury note yield ended the session 4 bps lower at 1.73%, and the 30-year bond yield fell by 3 bps to 2.58%.

SCL Health bonds price

Moving to new issues, the Colorado Health Facilities Authority sold $221.97 million of series 2016 revenue bonds for SCL Health.

The deal included $55,495,000 of series 2016A bonds, $55.49 million of series 2016B bonds, $55,495,000 of series 2016C bonds and $55.49 million of series 2016D bonds.

All of the bonds are due Dec. 1, 2045 and bear interest at the weekly rate.

The bonds (/AA-/AA-) were sold on a negotiated basis with BofA Merrill Lynch as the senior manager for the 2016A-B bonds and Morgan Stanley & Co. LLC as the lead manager for the 2016C-D bonds.

Proceeds will be used to construct, equip, renovate and improve health-care facilities at Saint Joseph’s Hospital Inc. or St. Mary’s Hospital & Medical Center, both operated by SCL.

Denver Water sells debt

In other new offerings, the Denver Board of Water Commissioners sold $158,225,000 of series 2016 master resolution water revenue and refunding bonds.

The deal included $94,755,000 of series 2016A revenue bonds and $63.47 million of series 2016B refunding bonds.

The bonds (Aaa/AAA/AAA) were sold competitively with Citigroup Global Markets Inc. winning the bid.

The 2016A bonds are due 2017 to 2038 with term bonds due in 2040, 2042 and 2045. The serial coupons range from 2.5% to 5% with yields from 0.54% to 2.91%. The 2040 bonds have a 3% coupon and priced at par. The 2042 bonds have a 3% coupon and priced at 98.562 to yield 3.08%. The 2045 bonds have a 3% coupon and priced at 97.703 to yield 3.12%.

The 2016B bonds are due 2018 to 2029 and 2034 to 2037. The serial coupons range from 2% to 5% with yields from 0.63% to 2.91%.

Proceeds will be used to finance capital improvements to the city and county’s water system and to refund existing debt.

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