Top-quality municipal bonds ended stronger on Wednesday, according to traders, as deals from Virginia and Georgia issuers hit the market.
In the competitive arena, the Virginia College Building Authority sold $592.66 million of educational facilities 21st Century College and equipment program revenue bonds in three separate sales.
Bank of America Merrill Lynch won the $348.81 million of Series 2017C Tranche 2 bonds with a true interest cost of 3.18%. The issue was priced to yield from 2.13% with a 5% coupon in in 2028 to 3.04% with a 4% coupon in 2037.
BAML also won the $143.93 million of Series 2017C Tranche 1 bonds with a TIC of 1.63%. The issue was priced as 5s to yield from 0.82% in 2018 to 1.99% in 2027.
Raymond James won the $99.92 million of Series 2017D taxable bonds with a TIC of 2.55%. The issue was priced to yield from 1.30% at par in 2018 to 2.90% at par in 2027.
The deals are rated Aa1 by Moody’s Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
Since 2007, the Virginia CBA has sold about $8.5 billion of debt with the most issuance occurring in 2009 when it issued $1.69 billion of bonds. It sold the least in 2008, when it issued $144.1 million of bonds.
In the negotiated sector, BAML priced and repriced the Georgia State Road and Tollway Authority’s $350.4 million of Series 2017A and B federal highway grant anticipation revenue and refunding revenue bonds and Series 2017A and B federal highway grant reimbursement revenue and refunding revenue bonds.
The $51.33 million of Series 2017A anticipation revenue bonds were priced as 5s to yield from 0.94% in 2018 to 2.49% in 2029.
The $231.64 million of Series 2017B anticipation revenue refunding bonds were priced as 5s to yield from 0.94% in 2018 to 1.37% in 2021.
The $12.81 million of Series 2017A reimbursement revenue bonds were priced to yield from 0.94% with a 5% coupon in 2018 to 2.49% with a 5% coupon in 2029.
The $54.63 million of Series 2017B reimbursement revenue refunding bonds were priced as 5s to yield from 0.94% in 2018 to 1.37% in 2021.
The anticipation bonds are rated A2 by Moody’s, AA by S&P and A-plus by Fitch while the reimbursement bonds are rated A1 by Moody’s, AA by S&P and A-plus by Fitch.
Barclays Capital priced Massachusetts' $200 million of consolidated loan of 2014 Series D multi-modal Subseries D-2 general obligation bonds.
The issue was priced at par to yield 1.70% in a 2043 maturity with a mandatory tender date in 2022. The deal is rated Aa1 by Moody’s, AA by S&P and AA-plus by Fitch.
Jefferies priced and repriced the Alaska Housing Finance Corp.'s $142.96 million of Series 2017A state capital project bonds.
The issue was repriced to yield from 0.97% and 1.02% with 2% coupons in a split 2018 maturity to 3.17% with a 4% coupon in 2032.
The deal is rated AA-plus by S&P and Fitch.
Frost Bank priced the United Independent School District, Texas’ $103.64 million of Series 2017 unlimited tax school building bonds.
The issue is priced to yield from 1.24% with a 4% coupon in 2020 to 2.92% with a 5% coupon in 2039. A 2042 maturity was priced as 5s to yield 2.97% and a split 2047 maturity was priced as 4s to yield 3.44% and as 5s to yield 3.03%.
The deal, which is backed by the Permanent School Fund guarantee program, is rated triple-A by Moody’s and Fitch.
The yield on the 10-year benchmark muni general obligation fell one basis point to 1.93% from 1.94% on Tuesday, while the 30-year GO yield dropped one basis point to 2.73% from 2.74%, 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 1.35% on Tuesday, the 10-year Treasury yield rose to 2.27% from 2.26% and the yield on the 30-year Treasury bond was unchanged from 2.85%.
The 10-year muni to Treasury ratio was calculated at 85.1% on Wednesday, compared with 85.8% on Tuesday, while the 30-year muni to Treasury ratio stood at 95.9% versus 96.1%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,086 trades on Tuesday on volume of $10.16 billion.