Municipals end steady as new issues flood market; Washington sells $933.13 million G.O. bonds

By Sheri Kasprzak

New York, Sept. 30 – Municipals were flat to close out a busy session for the primary market Wednesday, traders reported.

The triple-A 10-year muni bond yield remained at 2.14%, and the 30-year yield held steady at 3.13%.

Primary action dominated market action with the State of Washington leading the charge.

The state hit the market with $933,125,000 of series 2016 general obligation bonds, downsized from $944.28 million.

The bonds were sold competitively.

The deal included $443.83 million of series 2016A-1 various purpose bonds, $51,085,000 of series 2016A-2 green bonds, $189.34 million of series 2016B motor vehicle fuel tax bonds, $60,565,000 of series 2016T taxable bonds and $188,305,000 of series R-2016A various purpose refunding bonds.

The 2016A-1 bonds are due 2021 to 2040 with 5% coupons and 1.55% to 3.24% yields.

The 2016A-2 bonds are due 2016 to 2025 with term bonds due in 2030, 2035 and 2040. The serial coupons range from 2% to 5% with yields from 0.27% to 3%. The 2030 bonds have a 3% coupon and priced at 97.652 to yield 3.20%, and the 2035 bonds have a 3.375% coupon and priced at 97.521 to yield 3.55%. The 2040 bonds have a 3.75% coupon and priced at 99.835 to yield 3.76%.

The 2016B bonds are due 2016 to 2040 with 5% coupons and yields from 0.25% to 3.24%.

The 2016T bonds are due 2016 to 2021 with 0.36% to 2.02% coupons and all priced at par.

The R-2016A bonds are due 2016 to 2024 with 5% to 5.5% coupons and yields from 0.17% to 2.11%.

Proceeds will be used to finance state capital projects and to refund existing debt.

U of Miami sells debt

Another major offering came from the Miami-Dade County Educational Facilities Authority of Florida, which sold $661.09 million of series 2015 revenue and revenue refunding bonds for the University of Miami.

The deal included $403 million of series 2015A bonds and $258.09 million of series 2015B taxable bonds.

The 2015A bonds are due 2030 to 2035 with term bonds due in 2040 and 2045. The serial bonds have 5% coupons. The 2040 bonds have a 4% coupon and priced at 97.13, and the 2045 bonds have a 5% coupon and priced to yield 3.93%.

The 2015B bonds are due April 1, 2050, have a 5.073% coupon and priced at 147.367.

The bonds (A3/A-/) were sold through joint bookrunners Barclays, Mizuho Securities, BofA Merrill Lynch, Morgan Stanley & Co. LLC and U.S. Bancorp Investments Inc.

Proceeds will be used to finance capital projects at the University of Miami and to refund the university’s series 2007A and 2008A revenue bonds.

California PWB deal prices

Over on the West Coast, the California State Public Works Board brought $548,185,000 of series 2015 lease revenue refunding bonds. The offering was downsized from $551.6 million.

The bonds (A1/A+/A) were sold through joint bookrunners RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC.

The deal includes $431,885,000 of series 2015F various state office buildings bonds and $116.3 million of series 2015G Richmond Laboratory bonds.

The 2015F bonds are due 2016 to 2030 with 3% to 5% coupons and 0.23% to 2.99% yields.

The 2015G bonds are due 2017 to 2031 with 2% to 5% coupons and 0.58% to 3.43% yields.

Proceeds will be used to refund the board’s series 2002A, 2002C, 2003D, 2005A-B and 2005K lease revenue bonds.

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