The long-awaited bond deal for the
In secondary activity, municipal bonds were unchanged at mid-session, according to traders.
Primary market
Details were not immediately available on the Wisconsin’s Public Finance Authority’s $1.1 billion revenue bond deal for the American Dream project. Goldman Sachs is the underwriter on the deal, which the PFA is issuing on behalf of the New Jersey Sports & Exposition Authority.
The issue consists of $800 million of limited obligation PILOT revenue bonds and $300 million of limited obligation grant revenue bonds. The deal is not rated.
Loop Capital markets priced the
The bonds were priced to yield from 0.99% with a 3% coupon in 2019 to 2.92% with a 5% coupon in 2039 and from 2.94% with a 5% coupon in 2042 to 3.27% with a 4% coupon in 2044.
The issue is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.
The TFA also competitively sold $250 million of taxables in two separate offerings Wednesday.
The $189.14 million of taxable subordinate Fiscal 2017 Series F Subseries F-2 future tax secured bonds were won by JPMorgan Securities with a true interest cost of 2.81%. The $60.86 million of taxable subordinate Fiscal 2017 Series F Subseries F-3 future tax secured bonds were also won by JPMorgan with a TIC of 3.21%. Pricing information on the deals was not immediately available.
The bonds are also rated Aa1 by Moody’s and AAA by S&P and Fitch.
Also in the competitive sector, the Rhode Island Health and Educational Building Corp. sold $140.81 million of Series 2017A higher education facilities revenue bonds for Brown University.
Bank of America Merrill Lynch won the bonds with a TIC of 3.25%. The issue was priced as 5s to yield from 1.32% in 2022 to 2.19% in 2029; a 2037 maturity was priced as 4s to yield 3.06% and a 2047 maturity was priced as 4s to yield 3.28%.
The deal is rated Aa1 by Moody’s and AA-plus by S&P.
Since 2007 the HEBC has issued roughly $3.52 billion of securities, with the largest amount occurring in 2016, when it sold $587 million. The lowest yearly issuance took place in 2014, when it issued just $68 million.
In the negotiated sector, BAML is expected to price the
The deal is rated A2 by Moody’s and A by S&P and Fitch.
Citigroup is expected to price the Metropolitan Water District of Southern California’s $188 million of Series 2017B subordinate water revenue bonds for retail investors.
The deal is rated AA-plus by S&P and Fitch.
Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $5.25 billion to $10.16 billion on Wednesday. The total is comprised of $2.97 billion of competitive sales and $7.19 billion of negotiated deals.
Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.86% on Tuesday, while the 30-year GO yield was flat from 2.70%, according to a read of Municipal Market Data's triple-A scale.
Treasuries were weaker on Wednesday. The yield on the two-year Treasury rose to 1.36% from 1.34% on Tuesday, the 10-year Treasury yield gained to 2.17% from 2.15% and the yield on the 30-year Treasury bond increased to 2.74% from 2.73%.
On Tuesday, the 10-year muni to Treasury ratio was calculated at 86.5%, compared with 85.0% on Monday, while the 30-year muni to Treasury ratio stood at 98.7% versus 96.8%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 42,851 trades on Tuesday on volume of $9.45 billion.
