Munis gain on safe haven bid; Pennsylvania Housing, Michigan, California Housing detail deals

By Cristal Cody

Eureka Springs, Ark., June 27 – Municipal bonds continued to rally on Monday along with Treasuries on a safe haven bid following the results of the United Kingdom’s vote to leave the European Union on Friday.

Yields rallied about 4 basis points to nearly 10 bps on the long end, according to a market source.

In other activity, details emerged on new deals priced in the primary market.

The Board of Regents of the University of California placed $532.07 million of limited project revenue bonds.

The California Housing Finance Agency sold $236.35 million of home mortgage revenue bonds.

Pennsylvania Housing Finance Agency priced $214,265,000 of series 2016-120 single family mortgage revenue bonds.

Also, Reedy Creek Improvement District of Orange and Osceola counties, Fla., priced $165.5 million of series 2016A ad valorem tax bonds.

U of California taps market

The University of California sold $532.07 million of limited project revenue bonds (Aa3/AA-/AA-) in two parts, according to a new issue statement.

The transaction included $434,165,000 of series K bonds and $97,905,000 of series L bonds.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. were the lead managers of the negotiated deal.

Proceeds will be used to finance capital projects at the university and to refund certain outstanding general revenue bonds.

California Housing sells

The California Housing Finance Agency sold $236.35 million of series 2016A home mortgage revenue bonds (A2/AA-/) at par, according to an official statement.

The bonds priced with 4% to 5% coupons and yields from 0.91% to 2.71% across the maturities due 2019 through 2036.

BofA Merrill Lynch and RBC Capital Markets, LLC were the bookrunners.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Loop Capital Markets and Morgan Stanley & Co. LLC were the managers of the negotiated deal.

Proceeds will be used together with available revenues and income to redeem all of the agency’s outstanding series 2006D, 2006E, 2006F, 2006I, 2006K and 2006M home mortgage revenue bonds.

Pennsylvania Housing prices

Pennsylvania Housing Finance Agency priced $214,265,000 of series 2016-120 single family mortgage revenue bonds (Aa2/AA+/), according to a pricing sheet.

The serial bonds priced at par with coupons ranging from 1.3% to 1.95%. The deal also included four tranches of term bonds.

RBC and BofA Merrill Lynch were the lead managers of the negotiated offering.

Proceeds will be used to refund some outstanding single family mortgage revenue bonds and to provide funds to purchase new mortgage loans.

Michigan prices G.O. bonds

Michigan sold $189,035,000 of general obligation refunding bonds (Aa1/AA-/AA) in two parts, according to an official statement.

The deal included $129,085,000 of series 2016A G.O. school loan refunding bonds and $59.95 million of series 2016B G.O. environmental program refunding bonds.

BofA Merrill Lynch and Wells Fargo managed the negotiated offering.

Proceeds will be used to refund outstanding school loan prior bonds and outstanding environmental prior bonds.

Reedy Creek Improvement prints

Florida’s Reedy Creek Improvement District of Orange and Osceola counties priced $165.5 million of series 2016A ad valorem tax bonds (Aa3/AA-/AA-), according to a pricing sheet.

The bonds priced with 4% to 5% coupons and yields from 0.91% to 2.71% across the maturities due 2019 through 2036.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Loop Capital Markets and Morgan Stanley were the managers of the negotiated deal.

Proceeds will be used to finance district-wide transportation projects.

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