After morning uncertainty, Barclays followed through pricing a $400 million Cleveland Clinic Health System century bond — a rare 100-year maturity usually reserved for ultra-high-rated higher education credits, said a source close to the situation.
Cleveland Clinic is the first non-profit healthcare system to issue a century bond, a decision Moody's Investors Service viewed favorably in rating the deal Aa2, with a stable outlook, according to a rating report.
"The Cleveland Clinic's national reputation, exceptional fundraising, strong investment position relative to moderate exposure to century bonds, and management discipline support a viable long-term business enterprise and minimize risks related to century bonds," stated a report released by the ratings agency.
The $400 bullet maturity was priced to yield 4.838% on a 5% year coupon in 2114, said a source close to the situation. The pricing came in at about a 170 point spread to Wednesday's Municipal Market Data triple-A 5% scale, according to data provided by TM3.
After light activity in the morning, secondary trading has tapered off Friday afternoon, echoing the silence felt in the primary.
The MMD triple-A 5% curve weakened slightly, most notably in the intermediate to long end of the curve. Bonds maturing between 2015 and 2016 have been steady as those maturing between 2024 through 2044 softened between one and three basis points, according to data provided TM3. Bonds maturing between 2017 and 2023 weakened up to two basis points.
