Municipals continue winning streak even as secondary action drops off; Port Authority prices

By Sheri Kasprzak

New York, Sept. 27 - Yields were yet again improved somewhat as primary activity continued to dominate the market, traders reported.

"Secondary is not as active as yesterday, but I think primary is doing well enough to drive the market," said a trader reached in the afternoon.

Yields were better by 1 basis point to 2 bps, said a trader.

Heading up the active day for primary was a $2 billion offering from the Port Authority of New York and New Jersey.

The authority sold series 174 consolidated bonds through RBC Capital Markets LLC, Bank of America Merrill Lynch, Barclays and Citigroup Global Markets Inc.

Price talk was plus 165 bps

Alan Schankel, managing director with Janney Montgomery Scott LLC, said the authority, which was recently downgraded a notch by Moody's Investors Service, saw price talk on the 50-year bonds at Treasuries plus 165 bps.

The bonds (Aa3/AA-/AA-) are due Oct. 1, 2062, have a 4.458% coupon and priced at par.

Proceeds will be used to finance the redevelopment of the World Trade Center site and to refund existing debt.

Meanwhile, Schankel reported that the Metropolitan Transportation Authority of New York (A2/A/A) is gearing up to borrow $3 billion before the end of the year, including refunding and remarketing issues, some with floating coupons.

Massachusetts downsizes

In other offerings, the Commonwealth of Massachusetts brought to market $800 million of series 2012 general obligation revenue anticipation notes (MIG 1/SP-1+/F1+) said a pricing sheet. The offering was substantially downsized from $1.2 billion.

The deal included $600 million of series 2012A RANs and $200 million of series 2012B RANs.

The 2012A notes are due April 25, 2013, have a 2% coupon and priced at 101.065. The 2012B notes are due May 23, 2013, have a 2% coupon and priced at 101.213.

The notes were sold competitively.

Proceeds will be used to finance capital expenditures for the commonwealth ahead of the collection of certain revenues.

Earlier this week, the commonwealth sold $400 million of G.O. bonds.

Port of Oakland sells debt

Elsewhere, the Port of Oakland, Calif., priced $384,395,000 of series 2012 refunding revenue bonds, said a pricing sheet.

The bonds (A2//A+) were sold through Bank of America Merrill Lynch.

The deal included $380.82 million of series 2012P AMT refunding revenue bonds and $3,575,000 of series 2012Q non-AMT refunding revenue bonds.

The 2012P bonds are due 2014 to 2033 with 2% to 5% coupons. The 2012Q bonds are due May 1, 2014, have a 2% coupon and priced at 102.451.

Proceeds will be used to refund existing debt.

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