New Hampshire has pulled a refunding component of its Tuesday
The deal team — with PRAG acting as municipal advisor and Troutman Pepper Locke as counsel — had been aware the refunding series might not be feasible due to market rates, and announced on Monday that the state decided to postpone the refunding portion of the sale "indefinitely, due to current market conditions."
The series was planned to comprise $23 million of the $83 million competitive deal. The remaining $60 million was sold to TD Bank with a true interest cost of 3.5723%. The bonds were priced with 5% coupons and yields ranging from 2.36% in 2027 to 4.08% in 2046.
The 2016 bonds included 5s of 2027 with a 2.46% yield and 3.25s of 2036 at 96.25%, according to the official statement.
In a conversation with The Bond Buyer last week, New Hampshire Treasurer Monica Mezzapelle acknowledged the refunding might be scrapped due to market conditions.
"We're hoping we can do a refund of our 2016 series. That will depend on the market, but right now that's still our intent,"
New Hampshire typically sells GOs once per year, Mezzapelle said, and those deals generally include a refunding component.
The state is rated Aa1 by Moody's Ratings and AA-plus by Fitch Ratings and S&P Global Ratings.
The statement on MuniOS announcing the postponement said the deal could possibly be rescheduled.
"In the event an alternative sale date and time for the bonds is scheduled, such alternative sale date and time will be announced via MuniOS at least 48 hours prior to such alternative sale date and time," the state said.
