The Bond Buyer
While market ponders loss of PABs, one takes center stage
Market participants reacted negatively to the proposal in the tax reform bill to eliminate advanced refundings and private activity bonds, saying it would crimp volume and the savings issuers can get when rates fall. Against that backdrop, strong demand met the Virginia Small Business Financing Authority's $737 million PAB offering in the primary.
In the biggest deal of the week, Bank of America Merrill Lynch priced the Virginia Small Business Financing Authority’s $737 million of senior lien private activity revenue bonds for the Transform 66 P-3 Project. The bonds yield 3.71% with a 5% coupon in 2047, 3.79% with a 5% coupon in 2049, 3.90% with a 5% coupon in 2052 and 4.00% with a