Municipals cheaper as Treasuries fall on FOMC meeting; Pennsylvania parking bonds price

By Sheri Kasprzak

New York, Dec. 18 - Municipals were off on Wednesday, cheaper but outperforming Treasuries, after the Federal Open Market Committee elected to reduce its bond-purchasing program by $10 billion a month, market sources said.

"We're a bit cheaper, but we're still outperforming Treasuries," said a trader during the session.

Municipal yields were off by 1 basis point to 2 bps.

Comparatively, the 10-year Treasury note yield was up 4.5 bps, the 30-year bond yield rose by 4 bps and the five-year note yield rose by 4 bps.

Parking bonds price

Heading up the light primary activity Wednesday, the Pennsylvania Economic Development Authority hit the market with $229,885,000 of series 2013 parking system revenue bonds, according to pricing sheets.

The deal included $100,215,000 of series 2013A parking system revenue bonds (Baa3/BBB/), $14,785,000 of series 2013A capital appreciation bonds, $70.1 million of series 2013B junior lien parking revenue bonds (A1/AA/AA) and $44,785,000 of series 2013C junior lien parking revenue bonds (A1/AA/AA).

Yields from 1% to 6.64%

The 2013A current interest bonds are due 2022 to 2026 with term bonds due in 2034 and 2044. The serial coupons range from 4% to 5% with 3.53% to 4.33% yields. The 2034 bonds have a 5% coupon priced at 98.138 to yield 5.15%, and the 2044 bonds have a 5.25% coupon priced at 97.491 to yield 5.42%.

The 2013A capital appreciation bonds are due 2016 to 2021, 2027 to 2031 and 2035 to 2037. The serial bonds have 0% coupons with 1.74% to 6.64%.

The 2013B bonds are due 2017 to 2027 with a term bond due in 2053. The serial coupons range from 5% to 5.5% with yields from 1% to 4.1%. The 2053 bonds have a 6% coupon priced at 104.99 to yield 5.35%.

The 2013C bonds are due 2016 to 2033 with coupons from 5% to 5.5% and yields from 0.70% to 4.66%.

The bonds were sold through Guggenheim & Co.

Proceeds will be used to finance a pledged parking system in Harrisburg comprised of 11 parking facilities totaling 7,694 spaces and 1,260 on-street meters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.