Municipals flat to stronger as final deals price; MEAG hits market with $177.19 million bonds

By Sheri Kasprzak

New York, Dec. 10 – Municipals were flat on the short end of the curve and a touch stronger out long, traders reported, as the remainder of the week’s offerings hit the market to decent demand.

The 30-year bond yield fell by 1 basis point to close the day at 3.00% with the 10-year yield holding steady at 2.04%.

Meanwhile, investors have been snapping up the recent flood of supply.

Illinois State Toll Highway’s recently priced $340 million offering of revenue refunding bonds has particularly been well-received with yields cut as much as 5 bps in spots.

Those bonds (Aa3/AA-/) were sold Wednesday through RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC and are due 2031 to 2032 with 4% to 5% coupons and 3.07% to 3.32% yields.

Proceeds are earmarked for refunding the authority’s series 1998B, 2007A and 2008A bonds.

MEAG sells bonds

Among the larger deals priced Thursday, the Municipal Electric Authority of Georgia offered $177.19 million of series 2015 revenue bonds. The offering was cut from $200 million.

The bonds (A2) were sold through senior managers Wells Fargo Securities LLC and Citigroup Global Markets Inc.

The deal included $9,605,000 of series 2015A general resolution project bonds, $150,185,000 of series 2015A project one bonds and $17.4 million of series 2015A capital appreciation bonds.

The general resolution bonds are due 2019 to 2035 with 2.75% to 5% coupons and yields from 1.15% to 3.55%.

The project one bonds are due 2017 to 2035 with 2% to 5% coupons and yields from 0.57% to 3.14%.

The capital appreciation bonds are due 2030 to 2032 with 0% coupons and yields from 3.50% to 3.60%.

Proceeds will finance improvements and upgrades to the power system.

California water deal hits

Elsewhere in the utility sector, the Southern California Water Replenishment District sold $160 million of series 2015 replenishment assessment revenue bonds.

The bonds (/AA+/AA+) were sold through Wells Fargo Securities LLC and FTN Financial Capital Markets.

The bonds are due 2016 to 2037 with term bonds due in 2041 and 2045. The serial coupons range from 3% to 5% with yields from 0.35% to 2.82%. The 2041 bonds have a 5% coupon priced at 117.375 to yield 2.91%, and the 2045 bonds have a 4% coupon priced at 104.955 to yield 3.39%.

Proceeds will be used to finance the construction, improvement and renovation of water replenishment projects as well as to prepay the district’s series 2004, 2008 and 2011 certificates.

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