REFILE-Illinois' $1.3 bln GO bonds repriced with lower yields
CHICAGO, June 26 (Reuters) - Underwriters repriced $1.3 billion of Illinois general obligation bonds on Wednesday, dropping the top yield 20 basis points to 5.65 percent for debt due in 25 years.
The lower yield for bonds maturing in 2038 also narrowed the spread over Municipal Market Data's benchmark triple-A scale to 160 basis points from 180 basis points for those bonds in a preliminary pricing earlier on Wednesday.
The level shows a sharp increase in comparison to a credit spread of 138 basis points on the secondary market on Tuesday.
MMD analysts said they were hearing the deal appeared to be well received in the municipal bond market, attracting more than $8 billion in orders.
Yields also fell in several other maturities in the Illinois deal, which marked the state's first since it ended its spring legislative session on May 31 without a fix to its nearly $100 billion unfunded public pension liability. The lack of action on pensions led to downgrades of Illinois, already the lowest-rated state, by Moody's Investors Service and Fitch Ratings.