Top quality municipal bonds finished steady on Wednesday, according to traders, as the new issue pipeline kept on churning out more volume.
Bank of America Merrill Lynch priced two issues for Miami-Dade County, Fla., totaling about $745 million.
BAML priced the county's $316.73 million of Series 2016A tax-exempt aviation revenue refunding bonds, not subject to the alternative minimum tax as 5s to yield from 1.31% in 2022 to 2.58% in 2036 and 2.69% in a 2041 term bond.
The $428.65 million of Series 2016B taxable aviation revenue refunding bonds were priced at par to yield from 0.95% in 2017 to 3.756% in 2036; a 2041 maturity was priced at par to yield 3.856%.
The deals are rated A by S&P and Fitch and AA-minus by Kroll Bond Rating Agency.
Since 2006, Miami-Dade County has issued $16.87 billion of securities with the largest issuance coming in 2010 when it sold $2.38 billion. The county has issued more than $1 billion ever year, except for 2006 and 2011.
The preliminary amounts, according to the Dalcomp calendar, were for $365 million of tax-exempts and $377 million of taxables.
"In the current market, pricing in the taxable market allowed for greater savings," said Frank Hinton, Miami-Dade County Finance Department's Director of the Division of Bond Administration. "Authorization limited us to $750 million of bonds to be issued. Interest rates in the current markets dictated that we issue more taxable bonds and fewer tax-exempt bonds in order to maximize our savings."
In the competitive arena on Wednesday, Connecticut sold two separate issues totaling $500 million.
Morgan Stanley won the $250 million of Series 2016D tax-exempt general obligation bonds with a true interest cost of 2.53%. The issue was priced to yield from 0.65% with a 5% coupon in 2017 to 3.067% with a 3% coupon in 2036. Morgan Stanley also won the $250 million of Series 2016A taxable GOs with a TIC of 2.12%. The issue was priced to yield from 0.81% with a 1% coupon in 2017 to 2.562% with a 2.6% coupon in 2026. Both deals are rated Aa3 by Moody's Investors Service and AA-minus by S&P Global Ratings and Fitch Ratings.
Clark County, Nev., competitively sold $269.47 million of Series 2016 limited tax GO water reclamation refunding bonds, additionally secured by pledged revenues.
Bank of America Merrill Lynch won the bonds with a TIC of 2.64%. The issue was priced to yield from 0.62% with a 5% coupon in 2018 to 2.89% with a 3% coupon in 2038. The deal is rated Aa1 by Moody's and triple-A by S&P.
In the negotiated sector, Citigroup priced the San Diego Regional Transportation Commission's $325 million of Series 2016A limited tax sales tax revenue bonds.
The issue was priced to yield from 0.39% with a 4% coupon in 2017 to 2.14% with a 5% coupon in 2036; a 2041 maturity was priced as 5s to yield 2.22% and a 2048 maturity was priced as 5s to yield 2.27%. The deal is rated triple-A by S&P and Fitch.
JPMorgan Securities priced the Board of Regents of the University of Texas System's $272.35 million of Series 2016B permanent university fund bonds. The issue was priced to yield from 0.49% with a 5% coupon in 2017 to 2.59% with a 4% coupon in 2038; a 2041 term was priced as 4s to yield 2.61%. The deal is rated triple-A by Moody's and Fitch.
JPMorgan also priced the North Carolina Medical Care Commission's $125.14 million of Series 2016D healthcare facilities revenue refunding bonds for the Duke University Health System.
The issue was priced to yield from 2.02% with a 5% coupon in 2029 to 2.66% with a 4% coupon in 2036; a split 2042 maturity was priced at par to yield 3% and as 4s to yield 2.77%. The deal is rated Aa2 by Moody's and AA by S&P and Fitch.
BAML priced Lincoln, Neb.'s $114.34 million of Series 2016 revenue refunding bonds. The issue was priced to yield from 0.45% with a 5% coupon in 2017 to 0.70% with a 5% coupon in 2019 and to yield from 1.63% with 4% and 5% coupons in a 2026 split maturity to 2.19% with a 5% coupon in 2034. The deal is rated AA by S&P and Fitch.
Raymond James priced the Humble Independent School District, Texas' $185.63 million of Series 2016A unlimited tax school building bonds and Series 2016B unlimited tax refunding bonds.
The $43.45 million of Series 2016A bonds were priced to yield from 0.50% with a 3% coupon in 2017 to 2.58% with a 4% coupon in 2036; a 2041 maturity was priced as 4s to yield 2.67%. The $142.18 million of Series 2016B bonds were priced to yield from 0.64% with a 3% coupon in 2018 to 2.48% with a 4% coupon in 2034.
The deal, which is backed by the Permanent Scho0l Fund guarantee program, is rated triple-A by Moody's and S&P.
Separately, JP Morgan priced the Humble ISD's $86.12 million of Series 2016C unlimited tax refunding bonds, non-PSF. The issue was priced to yield from 0.67% with a 4% coupon in 2018 to 2.51% with a 4% coupon in 2033. The deal is rated Aa1 by Moody's and AA-minus by S&P.
Siebert Brandford Shank received the written award on the Pennsylvania Turnpike Commission's $313.99 million of Series 2016A oil franchise tax senior revenue refunding bonds and Series 2016B oil franchise tax subordinated revenue refunding bonds.
The $198.6 million of Series 2016A bonds were priced to yield from 0.63% with a 4% coupon in 2017 to 2.23% with a 5% coupon in 2032. The $115.4 million of Series 2016B bonds were priced to yield from 0.85% with a 4% coupon to 1.67% with a 5% coupon in 2023 and from 2.06% with a 5% coupon in 2026 to 2.47% with a 5% coupon in 2032. The deal is rated Aa3 by Moody's and AA by Fitch.
Secondary Market
The yield on the 10-year benchmark muni general obligation was flat from 1.45% on Tuesday, while the yield on the 30-year muni was unchanged from 2.17%, according to the final read of Municipal Market Data's triple-A scale.
Treasuries were little changed on Wednesday. The yield on the two-year Treasury was flat from 0.67% on Tuesday, the 10-year Treasury yield gained to 1.55% from 1.54% and the yield on the 30-year Treasury bond was unchanged from 2.29%.
The 10-year muni to Treasury ratio was calculated at 94.2% on Wednesday compared to 94.3% on Tuesday, while the 30-year muni to Treasury ratio stood at 94.7% versus 94.9%, according to MMD.
