Municipals improve as bulk of week’s new issues hit market; Connecticut brings G.O. bonds

By Sheri Kasprzak

New York, Aug. 6 – Municipals were somewhat better on Wednesday, following along with Treasuries, as several of the week’s larger offerings hit the market, insider said.

Yields were 1 basis point to 2 bps better across the curve as Treasuries climbed. A flight to quality, particularly to German bonds, gave U.S. Treasuries a push. Municipals, meanwhile, saw a rush of new issues, many of which priced with yields lowered at reoffering.

Connecticut G.O. bonds price

Leading up those offerings, the State of Connecticut hit the market with $510.59 million of series 2014 general obligation bonds.

The deal includes $300 million of series 2014E G.O. bonds, $200 million of series 2014A taxable G.O. bonds and $10.59 million of series 2014B taxable G.O. refunding bonds, said a pricing sheet.

The 2014E bonds are due 2015 to 2034 with 2% to 5% coupons with 0.13% to 3.59% yields.

The 2014A bonds are due 2015 to 2024 with 0.25% to 3.10% coupons and yields from 0.25% to 3.06%.

The 2014B bonds are due Sept. 1, 2037, have a 3.5% coupon and priced at 101.465 to yield 3.36%.

The bonds (Aa3/AA/AA) were sold competitively.

Proceeds will be used to finance capital expenditures for the state and to refund existing G.O. debt.

Tennessee school bonds sold

In other primary action, the Tennessee State School Bond Authority brought to market $304,095,000 of series 2014 higher educational facilities second program bonds.

The deal included $90,525,000 of series 2014A taxable bonds and $213.57 million of series 2014B refunding bonds, said a pricing sheet.

The 2014A bonds are due 2015 to 2029 with 0.35% to 3.712% coupons and all priced at par.

The 2014B bonds are due 2016 to 2037 with 3% to 5% coupons.

Yields were reportedly lowered on several maturities, said market insiders reached during the afternoon.

Proceeds will be used to prepay revolving credit loans and refund the authority’s series 2005A, 2006A, 2007A-B, 2008A-B and 2009A revenue bonds.

Yields lowered on U of Chicago

Elsewhere, the Illinois Finance Authority priced $574,065,000 of series 2014A revenue bonds priced Tuesday for the University of Chicago.

The bonds (Aa2/AA/AA+) were sold through Barclays and PNC Capital Markets LLC.

The bonds are due 2019 to 2035 with a term bond due in 2038. The serial coupons range from 4% to 5%, according to a term sheet. The 2038 bonds have a 4% coupon and priced at 100.41, and the 2038 bonds have a 5% coupon and priced at 111.797.

Yields were lowered in many maturities in reoffering, said a trader reached Wednesday.

Proceeds will be used to finance the construction, acquisition, design and equipment of educational facilities for the university and to advance refund the university’s series 2008B revenue bonds.

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