Munis Weaker in 'Extremely Choppy' Market 1

In the new-issue market yesterday, Lehman Brothers priced $854 million of tax and revenue anticipation notes for various California communities in multiple series. Notes from the $269 million Series A-1, for local agencies, mature in June 2009, with a yield of 1.8% on a 3% coupon. Notes from the $55...

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Bibliographic Details
Published inThe Bond buyer (New York, N.Y. 1982) Vol. 364; no. 32900
Main Authors SCARCHILLI, MICHAEL, Herman, Jack
Format Newspaper Article
LanguageEnglish
Published New York, N.Y SourceMedia dba Arizent 12.06.2008
Subjects
Alternative minimum tax
Bond ratings
Credit ratings
Discount coupons
Municipal bonds
Ratings & rankings
Treasuries
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Summary:In the new-issue market yesterday, Lehman Brothers priced $854 million of tax and revenue anticipation notes for various California communities in multiple series. Notes from the $269 million Series A-1, for local agencies, mature in June 2009, with a yield of 1.8% on a 3% coupon. Notes from the $55.2 million Series A-2, for Fresno, mature in June 2009, with a yield of 1.64% on a 3% coupon. Notes from the $315 million Series A-3, for Riverside County, mature in June 2009, with a yield of 1.64% on a 3% coupon. Notes from the $160 million Series A-4, for San Bernardino County, mature in June 2009, with a yield of 1.64% on a 3% coupon. Notes from the $55 million Series B, for Tulare County, mature in June 2009, with a yield of 2% on a coupon of 3%. Citi priced $221.7 million of Emory University revenue bonds for Georgia's Private Colleges and Universities Authority in multiple series. Bonds from the $99.9 million Series B mature in 2011, with a yield of 2.89% and coupons of 3.5%, 4% and 5%. Bonds from the $121.8 million Series C mature 2038, with a yield of 4.73% and coupons of 4.5% and 5%. Bonds from Series C are callable at par in 2018, while Series B bonds are not callable. Bonds from both series are rated Aa2 by Moody's and AA by Standard & Poor's. Banc of America also priced $65 million of home ownership revenue bonds for the North Carolina Housing Finance Agency, subject to the alternative minimum tax. Bonds mature 2009 through 2017, with term bonds in 2022, 2028, and 2032, and two term bonds in 2038. All bonds sold at par on coupons from 3.25% in 2009 to 5.55% in 2038, except for a $19.5 million term bond in 2038, which yielded 5.56% on a 6% coupon. The bonds, which are callable in 2018 at par, are rated Aa2 from Moody's and AA from Standard & Poor's.
ISSN:0732-0469