HomeMy WebLinkAboutCC 1979-10-30 AdvertisementTHE NEW YORK TIMES, TUESDAY, OCTOBER 30, 1979
M.A.C. Sets 87/8% Rate
In $90 Million Bond Sale
Long-term bonds of the Municipal
Assistance Corporation of New York
State were priced yesterdaY to yield 8%
percent. This was well above the 7%
percent set in a M.A.C. bond sale in Au-
gust and the highest rate of return on
these tax-exempt bonds in three and a
half years.
The increased yield resulted from
the general upward swing in interest
rates since early August, and it did not
appear to reflect any change in the per-
ception of the New 'York agency's cre-
ditworthiness. Since the preceding
M.A.C. offering, The Bond Buyer
index, a gauge of the general bond mar-
ket, has climbed 119 basis points,
roughly the same as the 125-basis-Point
increase in the yield on long-term
M.A.C. bonds.
The new M.A.C. bonds, to be sold for-
mally on Thursday, were tentatively
priced as 87/'s at 100 percent of their
face value. The offering totals $90 mil-
lion, comes due in 2008 and is rated
Baa-1 by Moody's and A by Standard &
Poor's. Salomon Brothers is managing
the underwriting syndicate.
While M.A.C.rs 37/8 percent yield was
the highest set yesterday, a relatively
large volume of other tax-exempt
bonds were given yields of 6 percent or
more.
A $63 million issue of pollution -con-
trol bonds backed by the Carolina
Power and Light Company, rated A by
both Moody's and Standard & Poor's,
was priced as at 100 percent of face
value. The bonds, to mature in 2009, are
being sold by a Blyth Eastman Dillon
group.
A Paine, Webber, Jackson & Curtis
network priced seven bond issues total-
ing $22.95 million backed by the Hospi-
tal Corporation of America as 81A's at
100. The bonds, rated A and A -minus,
mature in 2009.
A South Dakota Housing Develop-
ment Authority $21.48 million issue, ex-
pected to be rated A-1 and AA, was
priced to yield from 7.65 percent in 1963
to 7.70 percent in 1999, 81/4 percent in
2009 and 8% percent in 2022. A. G.
Becker Inc. heads the underwriters.