Municipals end weaker as big deals hit market; PANYNJ brings $2 billion of consolidated bonds

By Sheri Kasprzak

New York, Oct. 8 – Municipals rounded out a busy session Thursday on a weaker note with yields on top-rated municipals higher by as much as 2 basis points, traders reported.

Munis were weaker as Treasuries closed the day mixed.

Meanwhile, the largest and last deals of the week hit the market with some maturities finalizing with significant bumps, market insiders said.

PANYNJ sells bonds

Heading up Thursday’s active pricing session, the Port Authority of New York and New Jersey offered the week’s largest deal with $2 billion of 192nd to 194th series consolidated bonds.

The bonds were sold through senior manager Wells Fargo Securities LLC.

The deal included $500 million of 192nd series consolidated bonds, $305.53 million of 193rd series consolidated bonds and $1,194,470,000 of 194th series consolidated bonds.

The 192nd series bonds are due Oct. 15, 2065, have a 4.81% coupon and priced at par.

The 193rd series bonds are due 2016 to 2035 with 1.5% to 5% coupons.

The 194th series bonds are due 2016 to 2035 with term bonds due in 2041 and 2055. The serial coupons range from 1.5% to 5%. The 2041 bonds have a 5% coupon and priced at 127.463, and the 2055 bonds have a 5.25% coupon and priced at 132.478.

Proceeds will be used to finance transit and commuter projects.

Chicago airport bonds price

Another massive deal came from Chicago, which sold $1,954,180,000 of series 2015 general airport senior lien revenue bonds for the Chicago O’Hare International Airport.

The deal included $429.39 million of series 2015A AMT refunding bonds, $1,195,785,000 of series 2015B non-AMT refunding bonds, $194,745,000 of series 2015C AMT revenue bonds and $134.26 million of series 2015D non-AMT bonds

The 2015A bonds are due 2016, 2019 and 2023 to 2037 with 2% to 5% coupons.

The 2015B bonds are due 2016 and 2019 to 2035 with 4% to 5% coupons.

The 2015C bonds are due 2021 to 2035 with term bonds due in 2040 and 2046. The serial coupons range from 3.625% to 5%. The 2040 bonds have a 4.375% coupon and priced at 97.585, and the 2046 bonds have a 5% coupon and priced at 105.817.

The 2015D bonds are due 2021 to 2035 with term bonds due in 2040 and 2046. The serial bonds have 5% coupons. The 2040 bonds have a 4.125% coupon and priced at 98.265, and the 2046 bonds have a 5% coupon and priced at 108.437.

The offering finalized with significant bumps, including a 15 bps cut at the 2037 maturity, which was finalized with a 4.125% coupon to yield 4.39%, said a source close to the deal.

The bonds (A2/A/A-) were offered through senior managers J.P. Morgan Securities LLC and Loop Capital Markets LLC.

Proceeds will be used to retire commercial paper notes and refund the airport’s series 2003A-E, 2004A, 2004C-D, 2005A and 2008A-B revenue bonds.

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